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Mithi Chinoy in
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Save on homeowners’ insurance: Buyer’s Guide
If you’re looking for good homeowners’ insurance, you won’t find it easily. Sure, it takes some time, a lot of shopping around but eventually you do zero in the best one for you. You don’t know how to go about it? Well, here are some ways of finding the best deal that lowers your premium.
- Nose around and you’ll find it. Approach several insurance companies and get competitive rates.
- Raise your deductible amount. The deductible refers to the amount of money you need to pay in case of a loss before your insurance becomes applicable. Usually, the minimum deductible is $250. Now, increase your deductible to $500 and save a maximum of 12% on your premium.
- Ensure you can pay the new deductible amount. You’ve kicked in a new figure for your deductible. But can you really afford to pay it, in an emergency? Ensure you can.
- Buy your car insurance and your home policy from the same insurance company. If you do, you stand to get a heavy discount, so why not?
- Have you thought of all the expenses of buying a home? Buying a home is not the only expense you have to bear. You also have to buy insurance for it too. If you buy a new home, it’s electrical or plumbing systems will be in good shape, which can fetch you a discount on your premium.
- What about environmental damage? If you live by the sea, you run the risk of having the wind damage your house, and don’t forget earthquakes too. Can you bear the extra expense of repairs and maintenance?
- Insure only your home, not the land skirting it. It’s only the built-up portion of your property that is eligible for insurance against fire, storms, theft, etc, not the vacant land around it. When you tot up the value of the land to work out your homeowners’ insurance, don’t include this surrounding land.
- Enhance the safety of your home. You might like to make your home safer from thefts by installing burglar alarms, smoke detectors or deadbolt locks. If you do, you stand to get a 5% discount on each of these and if you install high-end security systems, your insurance company might even offer you a discount of up to 20%. To be sure you’re getting enhanced security and a deep discount, speak to your insurer before going in for any security systems.
- Quit smoking. Accidents caused by smoking lead up to over 23,000 fires at home each year. So, if you don’t smoke, your premium could be reduced drastically.
- Take a discount for seniors. According to a survey, retired people stay at home longer than younger people. And they spot a home fire faster than others too. So, if you’re 55 years and a retiree, you can claim this 10% discount.
- Are you eligible for group coverage? If you belong to a business association, you can work out a deal with an insurance company, which could take into account a discount for its members. Take advantage of this, if you can.
- Don’t move away from your insurer. If you’ve been dealing with an insurance company up to now, don’t move away from them now, because you may be rewarded with extra consideration now. Generally, insurers reduce their premiums by 5% if you’ve been with them for about five years, while some companies can reduce your premium by 10% after a six-year period.
So, think about it.
By Mithi Chinoy
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