The price
homeowners pay for home insurance can vary by hundreds of dollars,
depending on the
insurance company and your policy.
Here are some
things to
consider when buying homeowners
insurance:
SHOP AROUND
 It pays to shop around, so ask
your relatives, your friends and co-workers, check with the neighbors
and contact your state insurance department.
Many states have information available on
typical rates charged by major insurers and provide the
information about frequency of consumer complaints by company.
Don't forget to check online consumer
guides, insurance agents,
and your local insurance companies. Detailed research will give you an
idea of price ranges and tell you which companies have the lowest
prices.
Never consider price alone. The
insurance company you choose should
deliver the quality service, should have proper assistance in filling a
claim and offer a fair price. If you want to check service
quality, try to find the complaint information and talk to a number
of insurance providers to get a feeling for the type of service they
give. Also, ask
them directly what they would do to lower your insurance costs.
Some insurance companies offer
special discounts for being a long-term policyholder. Check their
customer loyalty policy.
CHOOSE PROPER
VALUE
Never put land and house value in your
homeowners insurance policy. Ask for buildings replacement value
instead, because the
land under your house is not at risk from windstorm, fire, theft, and
all
other perils covered in your policy. Homeowners
should pay only for rebuilding
costs, not for the full house and land value paid at the time of
purchase.
RAISE
DEDUCTIBLE AMOUNT
Deductible amount is the money you have
to pay toward a loss before insurance company starts to pay your
claim, according to the terms of your insurance policy agreement.
The higher
your
deductible, the more money you can save on your premiums. Most
insurance companies recommend a deductible of at least $500.
If
you can raise amount of your deductible to $1,000, with some insurance
companies you may save as much
as 25 percent. Check with your local insurer, because prices may vary
by the area and the risks involved.
TRY
TO BUY YOUR HOME AND AUTO INSURANCE TOGETHER
Some insurance companies will
take percentage off your premium if you buy two or more policies from
them. Check with your insurance provider and make certain your combined
price is lower than buying the different coverages from different
companies.
IMPROVE
YOUR HOME
Some insurance companies will take percentage off your premium if you take steps to make
your home more resistant to storms or disasters. You may qualify for
savings by adding storm shutters or building reinforcing.
With
some insurers you can even get discounts for
installing a dead-bolt locks, smoke
detectors or burglar alarm. Discounts vary by company, check with your
policy provider for details.
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