How Do I Reduce the Premium on My Homeowner's Insurance Policy?

Even smart shoppers can have a couple issues working against them in their quest to reduce an insurance policy premium. The age of the house, construction materials used and place can factor into an insurance policy premium. Homes situated outside city limits, positioned further than 1,000 feet from a fire hydrant or in a distance of over seven miles from a fire station will frequently pile additional fees onto an insurance policy premium. Older homes with outdated wiring, a deteriorating roof or chipping paint can affect eligibility for a homeowner’s insurance policy.

Compare homeowner’s insurance policies carrying exactly the very same limitations with seven to 10 different carriers prior to purchasing a policy. Check on the internet with the state department of insurance to receive an overview of carrier prices and company financial ratings in your own state.

Houses with fire extinguishers, smoke detectors and deadbolt locks. Some companies offer additional discounts for having all three of these safety items set up.

Check with a local home-safety expert to inquire about installing a monitored fire or burglar alarm to the premises. Most insurance companies offer discounts of 5 percent to 15 per cent for monitored alarms that alert the police and fire departments to a crisis. Speedy response times might help mitigate damage to a house and dissuade theft.

Bundle a house, cars, business or umbrella policy with the same company. Obtain discounts of 15 percent to 25 percent each automobile when bundling autos with a home, along with 10 percent to 20 percent on a homeowner’s premium. Additional discounts may apply to additional bundled policies.

Keep a clean claims history on a house. Avoid making little claims on homeowner’s policies which can add penalty fees onto the premium and earn a policyholder uninsurable when desiring to switch carriers. Insurance companies frequently have strict underwriting guidelines which analyze past claims when determining whether the new policyholder is an acceptable risk.

Choose a higher house deductible, such as $1,000, which reduces annual premiums and will help homeowners avoid the desire to make a run of small claims.

Keep credit ratings squeaky clean to reap additional savings on a house policy. Policyholders with good credit standing are considered better risks than those with bad credit ratings and can receive additional discounts on a policy.

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