 It may be time to take another look at your homeowners insurance options. The good news is there are plenty of resources to get you started. So whether you’re buying homeowners insurance for the first time, or are stuck with a policy that will soon expire, these tips will help.
A new, online resource
The Texas Department of Insurance launched a consumer Web site geared to help you find homeowners insurance. The site, helpinsure.com, provides Texans with three different types of assistance:
- Consumers can input their insurance needs in the Sign Up section, and helpinsure.com will forward this information to insurance providers and independent agents selling homeowners policies.
- The Current Providers page contains a current list of homeowners-insurance providers and their contact information, so consumers can shop around for the best deal.
- The site also offers a Learning Center where consumers can find a rate guide, tips on shopping for insurance, and answers to common questions about homeowners insurance.
There’s also a toll-free number (866/695-6873) for assistance.
Save on homeowners insurance
Everyone who owns a house needs it. It’s a lot like most other types of insurance: You hope you won’t need it, but it’s nice to know it’s there if you do. Here are 12 tips for securing the best deal on homeowners insurance from helpinsure.com, a Texas consumer-friendly Internet site:
1. Shop around — and do it early!
Check with several different home insurance companies to get rate quotes. (An independent insurance agent can provide rate quotes from a variety of companies.) And definitely do it well before your policy expires, just in case you run into any snags along the way.
2. Raise your deductible
The deductible is the amount of money you have to pay toward a loss before your insurance kicks in. Home insurance deductibles usually start around $250. However, if you increase your deductible to:
- $500, you’ll save up to 12% on your premiums
- $1,000? Save up to 24%
- $2,500? Save up to 30%
- $5,000? Save up to 37%
Just make sure you can afford to pay the higher deductible out of pocket if something should happen.
3. Buy your home and auto policies from the same company
Many companies will give what’s called a multi-line discount if you buy both home insurance and auto coverage from them. |
4. Don’t skimp on insurance when buying a home
If you're looking at buying a home, think about the cost of insuring the home. A newer home’s electrical, heating, and plumbing systems and overall structure are likely to be in better condition than those of an older home — and can lead to a discount on your premiums.
5. Insure your home, not the land
While your home and its contents are at risk from fire, theft, windstorms, and other perils, the land your home sits on is not. Don’t include the value of the land in deciding how much home insurance you need to buy. Your agent can help you decide on the amount and type of coverage you need.
6. Improve security and safety
Items such as dead-bolt locks, burglar alarms, and smoke detectors can usually bring discounts of 5% each, depending on the company. Your insurance company may also offer a significant discount of 15% or sometimes even 20% if you install a sophisticated home-security system. If you’re thinking about buying such a system, check with your insurer to see which systems offer a discount.
7. Quit smoking
Besides being better for overall health, not smoking could get you a discount on your homeowners insurance. Smoking accidents account for more than 23,000 residential fires every year. Some insurers will offer to reduce premiums if no one in the home smokes.
8. Look for senior citizen discounts
Insurance companies have found that retired folks stay at home more and spot fires sooner. Older people also have more time for maintaining their homes. If you’re at least 55 years old and retired, you might qualify for as much as a 10% discount.
9. Keep an eye out for group coverage
Large employers and alumni and business associations often work out special deals with an insurance company, which includes a discount for employees and members.
10. Stay with an insurer
If you’ve kept your coverage with a company for several years, you may receive special consideration. Several insurers will reduce their premiums by 5% after you stay with them for three to five years– and some companies will offer discounts of as much as 10% after six years.
11. Check your policy annually
Your policy should reflect the value of your home and belongings. If you review your policy every year, you can easily make the necessary adjustments. If, for example, you just sold a valuable painting, you won’t need the same amount of personal property coverage. But if you’ve added a garage or other addition, you’ll need to increase your dwelling coverage.
12. Look for private insurance first if you’re considered high-risk
If you live in a high-risk area – one that is especially vulnerable to coastal storms, fires, flooding, or crime – and think you’ll be forced to buy home coverage from your state’s high-risk insurance pool, check first with an independent insurance agent. You may find that you can still buy insurance at a lower price in the private insurance market than from your state’s insurer of last resort.
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