|
|
|
Battling
The Rising Cost Of Homeowners Insurance
If
you’re like most people, you’ve seen your homeowners insurance rise
quite dramatically over the last few years. According to the National
Association of Insurance Commissioners, premiums have increased almost
50 percent since 1998.
Fortunately,
whether you’re a new homeowner, a prospective homeowner, or a
long-time homeowner, you may be able to lower your premium if you
shop around, review how you’re insured, and look into company-specific
discounts. In some cases, you may be able to save 15 to 20 percent.
First,
do a little comparative shopping and get quotes from several
different insurance companies. Although you’re unlikely to find a
rate comparable to what you may have paid 10 years ago, you can find a
lower premium if you do your research. One good source may be your
employer; many corporations offer discounted coverage for its employees.
Alternately, if you belong to an alumni association or a professional
trade association, you may be able to get group coverage through them.
Also, if you insure your auto and home through the same company, you
might qualify for a significant discount—sometimes 15 percent or more.
Secondly,
take a close look at your deductible and your level of insurance.
If your deductible is at the low end of the scale, consider raising it.
As a general rule, the higher your deductible is, the less your yearly
premium will be. When reviewing your policy also look at the amount of
coverage you have and see if you’re “over-insured.” Is your land
covered along with your house? If so, you may want to have your policy
adjusted to insure only the house. If a disaster strikes (fire,
hurricane, etc.) and your house is destroyed, the insurance company may
only cover the house and not the land. More often than not, in the eyes
of the insurance company, the land will still be useable.
Finally,
almost all insurance companies offer various discounts on homeowners
insurance for your age and for improvements you make to your house.
Homeowners who are over 55 or retired may be eligible for a discount on
coverage (a standard discount is usually 5 or 10 percent). Also, if you
have made home improvements, check with your insurance company to see if
they offer discounts for upgrades or for new systems. For example, new
wiring may qualify you for a discount because that is considered a
“safety improvement.” Other improvements that may help you save
money include installing storm windows, putting on a new roof, or
installing a security system.
In
the end, ask your insurer or prospective insurer direct questions about
how you can lower your homeowners insurance costs. You may be surprised
at the number of different ways they offer to save you money—just
because you asked. ∆
Sources:
National Association of Insurance Commissioners, Insurance Information
Institute.
|
