Six Ideas to Reduce Premiums
- Take steps to make your home as disaster resistant as possible. For instance, consider adding stronger doors, storm shutters and reinforced roofing for added protection from hurricanes and other disasters. Many insurance companies will reduce premiums based on these upgrades.
- Ask your insurance agent if they offer homeowners discounts for new or recently renovated properties. Because a newer home usually results in fewer losses, some insurers reduce rates by up to 25 percent for homes that are less than five or ten years old. Likewise, homes in Florida that have had significant renovations completed by a qualified contractor can also qualify for reduced insurance premiums. In this case, your insurance company may require documentation of the renovations, and when they were completed.
- Improve the safety and security of your home. Items such as burglar alarms, deadbolt locks and smoke detectors can reduce your monthly premiums. Your insurance company might also offer a discount for installing a sophisticated home-security system.
- Maintain an outstanding credit rating. Many insurance companies utilize credit scores in determining homeowner’s premiums. Achieving and preserving a strong credit score can result in a monthly premium discount.
- Ask questions to determine if your home is over insured. Be aware that the value of your home, and the value of your land are separate. If your home is severely damaged and needs to be rebuilt, the reconstruction costs should be based on the replacement value of your home, and not on the value of your land. See our article on Keep Your Castle Protected.
- Consider the possibility that other discounts may apply. Insurance companies offer a variety of options such as: long term customer discounts, senior citizen discounts, loss-free discounts, or multiple policy discounts.
Your home is your castle, and there are many steps you can take to protect this valuable asset in the most efficient manner possible. Speak with your agent to see if these or other discounts apply.