Shopping around for homeowner’s insurance can save you money, year after year, so it is well worth the effort to get expert guidance from one of RedRock’s trained insurance agents. There are a number of factors that affect the premium you pay, and there are decisions you can make, and things you can do to your home to keep costs low.
Here are a few tips on what you can do to lower your homeowners insurance cost:
Upgrade and improve your home’s heating, cooling, electrical and plumbing systems with more modern technologies that save on utility costs and have built-in safety features that insurance companies reward you for having.
Make the exterior of your home more fire-safe by keeping combustible things, like bushes and firewood, at least ten feet away from your home.
Safety features will lower your monthly premium. The more damage you can prevent, the lower the risk, and the lower the premium. Installing a fire prevention sprinkler system inside your home makes it less vulnerable to fire damage and makes your home a lesser risk. This can translate into lower homeowner policy premiums, so when calculating the cost/benefits, be sure to include the insurance savings.
Check your credit rating prior to applying for insurance, and take measures to improve your credit score, if possible because your credit rating can impact the premium.
Considerations when shopping for a home
The construction of your home is a factor when considering risk of damage due to hurricanes, tornados and other natural disasters. For this reason, a brick home is considered less of a risk than a framed home, and it costs less to insure it.
Be sure you have adequate flood insurance if your home is in a flood prone area. Not all policies come with flood insurance, so if you might need it, be sure you have this extra coverage. Be proactive and look into it right now! Don’t wait for a flood.
The age of the home also affects insurance rates. In general, newer homes have more safety features and less wear and tear, so they are considered lower risk, and it costs less to insure them.
Types of Homeowners Insurance Coverage
Structure of Your Home. In a standard policy you will be covered for accidents such as fire, storms, hail, tornadoes and hurricanes. The policy typically covers the value of the structure of your home, not the property, so you can save some money by subtracting the cost for the land from the overall market value. Be sure to include other structures such as a garage or shed.
Possessions. Things like furniture, jewelry, electronics, collectables, furs, art and other valuable items should be considered when selecting the amount of coverage. Typically possessions coverage pays from 50% to 70% of the value of your residence.
Liability Coverage. This protects you in the event someone gets injured while on your property. Accidents can happen at any time, so this is an important consideration. “Umbrella” coverage typically provides even greater protection from this type of liability. Ask your RedRock agent for details.
Other Expenses. If you want to be covered for transportation and hotel fees in the event your house is damaged to the extent it is not inhabitable, be sure to ask for a policy that provides such protection. Not all homeowner policies do, so ask your RedRock agent.
Fire Policy. This covers the dwelling only, and is typically for landlords that do not want to cover the contents of tenants, anticipating they will have their own renter insurance. It is not a comprehensive policy for home ownership.
For information about homeowner insurance in your state, click on one of the links below: