| We all want to get the most bang for our buck, | | | | list of common discounts: |
| no matter what we're buying. Below you'll find | | | | - Impact-resistant roofs |
| some factors that can affect how much you'll | | | | - Noncombustible roofs |
| pay for homeowners insurance. Pay attention and | | | | - Burglar, fire, and smoke alarm systems. These |
| you just might save some money on your home | | | | can lower your premiums by as much as 5%. |
| insurance policy! | | | | - Installing smoke detectors in older homes can |
| Factors that Affect Your Home Insurance | | | | save you as much as 10% on your policy. |
| Premium | | | | - Fire extinguishers |
| Get the facts. Start by gathering as much | | | | - Home security devices |
| information as you can. Find out what kind of | | | | - Age of house (companies set their own |
| building materials were used in your home. What is | | | | standard) |
| the age of the wiring, plumbing and other | | | | - Premises in good condition (companies set their |
| systems? All of this can effect your home | | | | own standards) |
| insurance premium. In parts of the country that | | | | - Home insured to full replacement cost |
| are susceptible to earthquakes, a masonry home | | | | - Good claims history for three years |
| could be a liability, but in areas that are more | | | | - Marking personal property with an identifying |
| prone to fires, a masonry home could be an | | | | number (inspection required) |
| asset. | | | | - Other policies with same company |
| Geography. Where you live effects your home | | | | - Senior citizens discount |
| insurance premium. You will pay more for | | | | - Age and Condition of Home |
| homeowners insurance if you live in an area prone | | | | The age and condition of your home will be |
| to natural disasters such as hurricanes. According | | | | considered. Companies cannot refuse to insure |
| to the Insurance Information Institute, the states | | | | homes in poor conditions, but they can deny |
| paying the most insurance in recent years are | | | | solely because of a home's age or value. |
| Texas, Louisiana and Florida. | | | | Cost to Replace. Premiums are more expensive |
| Your neighborhood can also affect your | | | | for homes with high replacement costs. |
| homeowners insurance policy. For example, being | | | | Construction Material. The materials a home is |
| close to a fire department may lower your | | | | constructed of will effect your premium. For |
| premium. Living in a high crime area will probably | | | | example, homes built primarily of brick are less |
| raise it. | | | | expensive to insure than wood frame homes are. |
| Is Enough Enough? Many homeowners are under | | | | Plan Ahead for Construction. If you are planning |
| insured. They have not bought enough insurance | | | | on adding to your home, consider that highly |
| to cover the replacement value of their home. | | | | flammable materials such as wood, cost more to |
| Many are over insured because they calculated | | | | insure. If you choose cement or steel-frame |
| their insurance needs by including the value of the | | | | construction, it will cost less to insure because it is |
| land. Make sure you're adequately insured for the | | | | less likely to be damaged by fire or adverse |
| rates you pay. | | | | weather conditions. |
| Personal Articles Floater. You may need to add a | | | | Claims History. Companies will charge more if you |
| personal articles floater to your standard | | | | have made claims in the past. Keep your |
| homeowners insurance policy if you have valuable | | | | deductible in mind. It may be less costly in the |
| items that exceed your policy limits. | | | | long run to make the repair yourself instead of |
| Protect Your Financial Assets. Increased liability | | | | filing a claim. |
| coverage is especially important for pool owners. | | | | Your Credit Score. Companies may take into |
| Other injurious items such as trampolines can | | | | account your credit rating to determine your |
| drive your insurance up by 10% or more. | | | | premium. However, a company cannot refuse |
| Consider Your Comfort Level. To some extent, | | | | you based solely on your credit rating. |
| you can determine your deductible level. A higher | | | | Remove Potential Risks. Check your property for |
| deductible can significantly lower your monthly | | | | potential risks such as heavy tree limbs. Remove |
| premiums. However, you may feel more | | | | all potential risks. |
| comfortable paying higher rates just in case | | | | Watch Out for Crime. Of course you cannot stop |
| disaster strikes. Your best bet is to choose the | | | | crime yourself, but you can make yourself less |
| highest deductible you can afford. But remember, | | | | vulnerable. The following precautions can help |
| the downside to this is that smaller claims such as | | | | lower your premium: |
| broken windows will have to be covered by you, | | | | - Have crime prevention officers inspect your |
| the homeowner. | | | | home and give you advice on protection. |
| Embrace Preventive Maintenance. Making repeated | | | | - Start a Neighborhood Watch Program. The local |
| claims for minor problems will raise your premium. | | | | police department can help. |
| Consider implementing a regular maintenance | | | | - Install a burglar alarm system. |
| schedule for your home. Repairing small problems | | | | - Keep shrubs and trees trimmed around windows |
| in a timely manner will help you avoid big losses | | | | and entryways. Overgrown shrubbery is a good |
| down the road. | | | | hiding place for vandals. |
| Review and Compare Policies Regularly. It's a good | | | | - Keep the area around your home well-lit. |
| idea to review your homeowners insurance policy | | | | - Permanently mark personal property with an |
| regularly and compare it to other policies. As you | | | | identifying number to aid in identification if the |
| review your existing policy, you should note any | | | | item is stolen and then recovered. A good time to |
| changes to the property that could lower your | | | | do this is while you are doing your home |
| premium. For example, if you have paid off your | | | | inventory. |
| mortgage or removed the trampoline and you | | | | Maintain Your Home and Yard. Companies want to |
| can provide proof of these changes, your | | | | avoid losses from injuries or accidents. A cluttered |
| insurance company will lower your premium. | | | | yard and a peeling house could imply an unsafe |
| Changes in your neighborhood can also reduce | | | | home. If your house is peeling, consider repainting. |
| rates. For example, if a fire hall has been built | | | | Remove anything from your property that could |
| next door to you, this will lower your premium. | | | | cause harm. Fix any obvious signs of damage |
| Pay Off Your Mortgage. If you pay off your | | | | such as rotting boards and sagging screens. |
| mortgage, you will likely see your home insurance | | | | Replace damaged roofs. Keep your yard trim and |
| premium drop because insurance companies figure | | | | neat. |
| that once you own a property outright you'll take | | | | Multiple Policy Discounts. Many insurance |
| better care of it. | | | | companies will give you a 10% discount if you also |
| Allowable Discounts. When you start making calls | | | | buy other insurance from them, such as auto or |
| to find the best home insurance coverage, you | | | | life. |
| should know what kinds of discounts you are | | | | Get to know these factors that can lower your |
| entitled to. Home security systems and dead bolts | | | | homeowners insurance premiums - and then put |
| will also help you save on your insurance. Here's a | | | | them to work saving money for you! |