Need home insurance but could use some help figuring out where to start? We can help! Homeowner's insurance is essential to protecting your home and property. Your home is your biggest investment. So, you'll want to ensure it is well-protected should something happen that causes damage or liability concerns. And homeowner's insurance protects your home against loss or damage.
Many homeowners' insurance companies and policies are available, and prices wildly fluctuate. Choosing the right policy for the right price can feel like walking through a maze. We want you to feel confident about your choice. So we've put together a brief guide on how to reduce the cost of insurance premiums.
Shop Around
As with anything else, shop around before you buy, and look beyond the insurance price. It's best to compare prices among different companies, so we recommend getting a price quote from at least three insurers.
Premium prices are essential but are only one of the factors to consider. Here are a few other things to check.
- Recommendations from trusted family, friends, neighbors
- Published reviews
- Complaints and resolutions
Before buying insurance, ask around. Check with family, friends, neighbors, and even co-workers. Also, check reviews written by third-party publications that dig into the company's background, history, and pricing to give you a glimpse of what you might expect.
Finally, every business receives occasional complaints. An adage says, "you can't please all of the people all of the time." But too many complaints or unresolved issues are a red flag.
Trust only insurers that manage their complaints well. The Better Business Bureau gives Extraco Banks an A+ rating, which makes us a great partner for all your banking and home insurance needs.
Ask for Discounts
Many insurers offer different discounts that are not always openly published, so you should do a little digging to find them.
Here are a few things that might qualify for discounts:
- Smoke detectors
- Carbon monoxide detectors
- Bundling other insurance policies through the same company
- Membership in specific organizations, associations, or affiliations
Additionally, some insurers offer discounts for retirees, loyal members, or members who don't file a claim for a specific number of years.
Improve Your Credit Score
Insurers request your credit score for more than determining your ability to borrow. Insurers also look at your credit history to assess your credit-based insurance score (CBI), which differs from your credit score.
Insurance companies use your CBI to assess your likelihood of filing a claim. However, it uses many of the same factors in your credit report, so knowing how it's figured can determine whether your CBI needs work.
You might pay higher premiums if:
- Your credit score is too low.
- You have a history of borrowing too much.
- You're late paying your monthly bills.
You might not qualify for home insurance or pay a higher premium if your credit score is too low or your report is blemished. Check your annual credit report to avoid higher premiums due to credit issues.
Increase Your Deductible
A deductible is your out-of-pocket expense, what you pay on a claim before the insurance company contributes any amount. While each insurer and policy differ, one thing is certain; when you choose a higher deductible, you usually receive a lower premium.
Do you live in a disaster-prone area? If so, there may be a separate deductible for damage caused by major disasters. Remember this before deciding whether to increase your deductible.
Reduce Risks
Speaking of disasters, another way to reduce the cost of home insurance is by managing and reducing risks.
- Remove any deadwood from your property.
- Erect gates or fencing around pools or trampolines.
- Install an alarm system, deadbolt locks, and other home security devices.
- Consider installing storm shutters.
- Make sure your electric, heating, and plumbing systems are updated.
- Reinforce your roof or install stronger roofing materials.
Also, ensure you have adequate attic ventilation. In addition, intake vents (soffit vents) should provide 50% of your required airflow (based on home size), while the remaining 50% should come from your exhaust vents.
Refrain from mixing different exhaust vents. For example, don't pair static exhaust vents with a ridge vent or a powered roof vent. They work differently, and airflow always follows the path of least resistance. Airflow will mostly negate your intake vents and flow through static vents and the ridge vent.
Reducing airflow increases attic and roof temperatures and the humidity of your attic space, which can damage insulation and shingles and even create mold problems.
The Final Word
Choosing the right home insurance need not be a pain. When you arm yourself with knowledge, you can find many ways to get a great deal on insurance while minimizing your premiums' cost. And remember, if you have any questions about home insurance, our team of professionals is here to help you make the right choice.
Sources
https://www.iii.org/article/how-to-save-money-on-your-homeowners-insurance
https://www.iii.org/article/how-to-assess-the-financial-strength-of-an-insurance-company
https://www.iii.org/article/understanding-your-insurance-deductibles
https://www.airvent.com/index.php/ventilation-resources/evaluate-your-needs
https://www.experian.com/blogs/ask-experian/does-home-insurance-companies-run-your-credit/
https://www.iii.org/article/12-ways-to-lower-your-homeowners-insurance-costs
https://www.nerdwallet.com/article/insurance/save-on-home-insurance
https://www.experian.com/blogs/ask-experian/ways-to-save-on-homeowners-insurance/
https://wallethub.com/profile/extraco-banks-13002173i
https://www.bbb.org/us/tx/temple/profile/bank/extraco-banks-national-association-0825-44721
https://www.annualcreditreport.com/index.action
