Many of my clients look at their homeowners insurance renewals each year and don’t stop to shop the market, often losing out on significant savings. Use these tips to keep your homeowners insurance premiums low and affordable.
1) Dwelling Coverage- Only cover your home for the amount it would cost to rebuild your home and not the full market value of your home. Insurance premiums are directly based on the dwelling amount. Over- insuring a home causes higher premiums with no added coverage. On Long Island, typical rebuilding costs average around $200 per square foot of living area. Use this as a baseline for rebuilding your house.
2) Deductible- In today’s market I recommend that you keep a deductible of at least $1,000 or more. Anything less than that can cost you dearly. Keep the extra premium in your pocket and save it for a rainy day. Moving your deductible from $500 to $1000 can lower your premiums by as much as 15%!
3) Security Systems- Do you have an alarm system? Did you tell your insurance agent? If not, make sure they are notified. Having a central station alarm for both burglar and fire will lower your premium by a minimum of 10%.
4) Shop your policy- Does your insurance agent search the market for you every few years? Market conditions, premiums, and programs change year to year. Keeping the most affordable homeowners insurance requires that you get quotes from different carriers at least every 3 years. Ask your agent to quote your homeowners insurance through other available insurance companies.
5) Off-Premises Theft Exclusion- This endorsement provides coverage for your personal property that is carried away from your home and is stolen. It comes with a hefty price. Typically, you are looking at an additional 10% in premium for very minimal coverage. It’s not often that you will be carrying more than $1,000 in personal items away from your home. Remove this coverage and maximize your savings by saving another 10%.
Keeping your homeowners insurance affordable isn’t difficult work. You just need to know the tricks of the trade and remove unnecessary coverage’s. So go ahead, call your agent, raise that deductible, keep your dwelling coverage low, and watch the savings pour in!
View the Coastal Insurance Video Library to find helpful video’s explaining everything from, how to save money on Homeowners Insurance to an easy explanation of Flood Insurance. Call today (631-782-3175) to speak with one of our underwriting experts. Fast Quotes, A.M. Best Rates & Free Advice.
Home Insurance Tips for the First Time Home Buyer