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Please read the following information to learn more about factors that affect your homeowner’s insurance costs.
Insurance companies often offer a number of special credits to help cut the cost of insurance because their customers have done something to reduce their risk. These credits most of the time are to reward valuable customers for their loyalty to their business.
A representative at Hamby & Aloisio will be able to tell you which credits are available in your state, because these credits are not available everywhere.
- Homeowners association credit: Homes located in eligible homeowners associations may qualify for a credit. This is because homeowners associations are likely to have a stronger sense of community and tend to watch out for one another. That means you have lowered your risk.
- Mature insured credit: If you or your spouse is retired, you could receive a credit on your policy. That is because retired people are likely to be home more often and may be able to prevent trouble, like smelling an unusual odor from the furnace and shutting it off before it backfires soot into the home.
- Multi-policy credit: You can save money if you have more than one type of policy with the same insurance company. (Home and Auto policy) The more good business you give the company, the more valuable you are as a customer.
- Newer home credit: The age of your home may qualify you for savings because of plumbing; heating, electrical systems of newer homes have lower risks than outdated systems.
- Nonsmoker’s credit: Studies show that homes inhabited by nonsmokers have a lower chance of having a fire. Your reduced risk may mean a reduced premium.
- Protective device credit: If your home has certain types of fire alarms, burglar alarms, locks or smoke detectors you have reduced your risk and may qualify for this credit.
- Renewal or long-term customer credits: You could get credit when you renew your policy, beginning with the first renewal or after you have been a policyholder for a designated number of years.
Deductibles
Ordinarily the deductible amount(what you pay out of your own pocket before your insurance policy kicks in) on a homeowners policy is $250.00. By choosing a higher deductible ($500, $750, $1000 or higher) you will have lower annual premium payments.
Have you insured your land?
Sometimes the value of your land is incorrectly included as part of your dwelling coverage (also known as Coverage A). Since homeowner’s policies do not provide protection for your land, it would be a waste of your money to include its value as part of Coverage A amount. Your coverage A amount should only reflect the price it would cost to repair or replace your home’s structure. If you are not sure whether your land is also included, contact your agent at Hamby & Aloisio to review your policy.
Renovating? Buying a new home? Building?
Certain building materials may cost less to insure or may qualify you for discounts. And choosing brick construction over a wooden frame structure or vice versa can make a difference in the areas where earthquakes or hurricanes frequently occur. Additionally, upgrading your electrical, plumbing, and heating systems could mean savings. Talk to a builder and Hamby & Aloisio!
Where do you live?
If you live near a local fire department in a safe, quiet, easily accessible neighborhood, your homeowner’s rates might be lower then if your home is located “off the beaten path”. Your home may cost more to insure if you are many miles from the nearest fire department.
Re-evaluate your valuables
If you bought additional insurance coverage for your valuable items, keep an eye on their value and adjust your coverage amount appropriately. Otherwise, some items that have decreased in value may be over insured.
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