1. Increase your deductible. Although a higher deductible increases your upfront costs if you file a claim, it can lower your premiums (assuming you can afford to pay that higher deductible should you need to). "Insurance is designed to protect you against significant financial harm," says State Farm spokesperson Dick Luedke. "It's not as well designed to protect against smaller losses that you can afford and not significantly change your financial position." Worters says increasing the deductible from $500 to $1,000 could save you up to 25 percent on premiums.
2. Maximize your credits. Many insurance companies offer credits for safety features like central station alarm systems, temperature monitors, or sensors that detect water or gas leaks. If you live in a gated community or recently renovated your home, your insurer may offer credits for those, so make sure your insurance company knows about any renovations or new features. (Luedke points out that if you use an insurance agent, he or she should make sure you're getting all the credits you're eligible for.) Or consider adding these features to increase your credits. "For a relatively modest price, you can add smoke detectors, heat sensors, or temperature monitors to that central system," says Schussel. "It may cost you a little bit of money upfront, but it can save you substantially more money in the long run."
3. Bundle multiple policies under one provider. Purchasing multiple insurance policies (for instance, car and homeowners insurance) from the same provider can lower your insurance costs. The savings vary depending on the company and the state, but Worters says bundling your insurance policies could save around 10 percent versus purchasing policies from different companies.
4. Know the update information on your home.
In order to get the most competitive premium on an older home, ensure you are familiar with the following:
- Has your plumbing, heating, roof and electrical system been updated in the past 20 years. Insurance companies want to know that your home’s systems have been taken care of and upgraded.
- A roof should not be older than 20 years. Circuit breakers are a must. Copper plumbing is desirable and central forced air heat is also desirable.
- An older house (built over 25 years ago) should be retrofitted. This means that the house has been bolted to the foundation; the water heater has been strapped.
- Is there a central alarm system in your home? If so, get a copy of an invoice and you could save 10% to 20% on the cost of your homeowners insurance.
5. Look for guaranteed or extended replacement cost coverage. Although it's best to have an accurate assessment of your home's replacement cost, if you own a historic home or are concerned about the limit on your home insurance coverage, guaranteed or extended replacement cost coverage could be a smart idea. Although it can cost about 10 percent more to buy a guaranteed versus actual cash-value policy, Worters says it's worth the extra cost in many cases.
[Yahoo]
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