Home insurance is a complex thing. There is a lot that goes into it and it is easy to either miss something or simply pay too much. The average price of a home in the United States is $200,000. The purpose of home insurance is to protect this huge investment. Home premiums are based off different features of the home. Items that contribute to rating a home often include: Location, proximity to fire department, age of home, age of roof, construction materials, wood burning stoves/ fireplaces, dogs, and exposures (is your home in a location that causes greater risk of damage?).
When you look at your homeowner’s insurance declaration page, do you know exactly what all those coverages really are? And if so, are you able to recognize where you are missing out on saving money?
Know your coverages:
Have you assessed your home and belongings to decipher how much insurance you need for your home? It is important to not be under-insured, but there is a possibility you could be over-insured. I have broken down some of the main coverages you will see for home insurance, what they mean, and how much you need based on your home.
• Dwelling: This is what your home is worth. It is important that your Dwelling coverage is enough to completely rebuild your home. This number is likely to go up, therefor it is vital to get a new dwelling estimate every 5-10 years. Luckily, Scott Loveland Insurance can do just that for you.
• Other Structures: This is referring to any other buildings or structures on your property that are not attached to your home. Be sure said structure is covered up to the actual replacement amount. For example, say you got a gardening shed in 2010. Keeping up with the current prices of your exact shed will come in handy in the event the shed needs to be replaced.
• Loss of use: This coverage covers the price of temporary living in the event your home becomes unlivable, think fire. The great thing about this coverage is that its relatively inexpensive and worth having.
• Personal Liability: If somebody were to get injured on your property, personal liability coverage comes in to play. If you do not have enough PL coverage, your personal could be at risk if the injured decides to sue. Scott Loveland Insurance typically does not write anything under $300,000 in personal liability.
• Medical Pay: This is coverage for medical bills toward you or somebody else that is injured on your property. It is VERY important to stay up to date with this. When your renewal is up, let us re-quote you with appropriate med-pay coverage.
Here are 6 tips for saving money on your homeowner’s insurance:
1. Receiving several quotes: We have a rating system that allows us to provide multiple quotes from top insurance carriers. All carriers differ in how they rate home. Example: The specific elements of your home may get you a lower premium in Progressive than in Travelers.
2. Higher Deductibles: A deductible is how much money you pay out of pocket in the event of a claim. The higher deductible you have the lower your premium will be.
3. Adequate Coverage: Make sure you have enough coverage. When going to file a claim the worst case would be not having enough coverage for the damage you are trying to fix. Yes, the more coverage you have the higher your premiums are likely to be. However, a higher premium is worth not paying an extra $100,000 to cover a loss.
4. Bundling Policies: The great thing about the always evolving insurance world is that most carriers now offer bundling discounts. To qualify for bundling packages, you will need to write at least 2 lines of insurance with one carrier. The discount does vary depending on the carrier.
5. Discounts: Aside from bundling, insurance carriers have multiple discounts that are relatively easy to qualify for. These discounts include but do not exclude Age 55+, Gated Community, Claims-Free, Non-smoker, Burglar Alarm, Water Sensor, Fire Alarm, etc. To find out all the discounts that you may qualify for, reach out to us and we can let you know.
6. Renovations: This is something everyone should carefully consider for their home- and often fail to realize the money it could save them. There are specific things that insurance carriers find vital and will rate your home premium based off it. Renovations that help your premium amount include new roofing, plumbing, and electrical wiring. Things such as adding on or adding new rooms within your home may make your premium increase.
Buying a home is a big deal, that with renovations and insurance can be overwhelming and confusing. Scott Loveland Insurance wants you to have the best coverage for the lowest price. We encourage you to look through resources on your insurance providers page and reach out to us if you have any questions for how to save money on your home insurance. You may be surprised what you will find!