There’s an old saying, “Your home is your biggest investment.” This is true for so many people. Not only is your home a large capital outlay, but also if all goes right, it builds in value over many years. For many seniors, selling it and downsizing can add significantly to a comfortable retirement.
Protecting your investment is a major priority, and a good Homeowners Insurance policy needs to be at the top of the list. Being a savvy shopper when it comes to insurance can get you the best coverage and save you money on your annual premiums. Let’s explore 9 ways to save money on Homeowners Insurance without sacrificing need coverage.
- Multiple Policy Discounts. If you’re buying your Homeowners Insurance and Auto Insurance from different insurance carriers, chances are you’re paying too much for both policies. Most insurers offer discounts for multiple policies, sometimes as high as 10%. So ask your agent about multiple policy discounts.
- Higher Deductibles. If your Homeowners policy has a $500 deductible, that’s the amount you’ll pay out of pocket if you file a damage claim. A tree falls and causes $2,000 in damage to your roof. You are responsible for $500, and the insurance company pays $1,500. If you can afford to pay a higher out-of-pocket expense for potential damage, you can save money by raising the deductible on your insurance. The higher your deductible, the lower your annual premiums. Just be sure you can take the financial hit in case you do incur property damage.
NOTE: Some areas, such as the Gulf Coast, require separate windstorm policies in addition to basic Homeowners Insurance. Having a higher deductible for each policy will save money on your annual premiums.
- Don’t Include Your Land Price. If your house is destroyed in a covered event, such as fire or storm, what is the actual replacement cost to build a new one? Be sure you’re not including the value of the land in your figures, or you’re estimating too high and paying too much. Insurance doesn’t cover land anyway. Fire or wind can’t destroy the land, nor can thieves steal it. Ask your agent to run a replacement cost estimate to get an accurate picture of what it would cost to rebuild your home. The difference means more money in your pocket.
- Automatic Inflation Adjustments. You insurance policy has a built-in yearly adjustment to pay the cost of replacing your home if it is destroyed by a covered event. Over time, this might exceed the replacement cost of some dwellings. If you think your replacement cost is too high, ask your agent to run a new replacement cost estimate. It may be possible to lower your costs without sacrificing protection.
- Personal Property. Most policies have automatic limits for personal property, such as jewelry and high-end computers. Be sure your level of protection does not exceed what you actually need. You might buy one of those new Mac Pro computers with a price tag of $5,500. But what’s it worth three years from now after depreciation? Don’t pay for coverage you may not need as the years go by. But be careful that you’re not eliminating needed coverage just to save some money now. Ask your agent for a personal property calculation, and be sure to ask if any items have special restrictions, such as jewelry and high-end computer gear.
- Safety Pays. Many insurers offer generous discounts for home security systems, smoke alarms, deadbolt locks, storm shutters, and other home safety equipment. Ask your agent about discounts for home safety devices.
- Location. Is your home near a fire station? Are there fire hydrants on your street? You will probably pay less for Homeowners Insurance.
- Senior Discounts. Some insurance carriers offer discounts to retired people over 65. Retirees spend more time at home, and occupied dwellings are less likely to be burglarized. Ask your agent about possible discounts if you are a retired senior.
- Buy From An Independent Agent. Independent Insurance Agents are not tied to any one company, so they can shop for the best coverage at the lowest possible rates. At Veazey Insurance Agency we are Independent Agents, representing more than a dozen companies that can best meet your individual insurance needs.
Call Veazey Insurance today and let our experts find just the right policy and coverage for you. Be sure to ask about the possible discounts mentioned in this article. At Veazey Insurance Agency, we’ve got you covered!