Six Ways to Lower Homeowners Insurance Premiums
Homeowners insurance rarely gets much attention, but it can be costing you more money than it should. The good news is, we know of ways that can lower this cost since we represent insurance companies that provide a variety of discounts and incentives that will help to lower your premium. Follow these additional steps to make sure you’re getting the best policy for a reasonable price:
Let us shop your policy.
Rates for identical homeowners insurance coverage can vary widely from one insurance company to the next. The Milner Insurance Group is an independent insurance brokerage giving us access to over 45 insurance carriers. Therefore, we shop the market for you guaranteeing you are getting the best rate possible. We also only represent “A-rated” companies giving you (and us!) a peace of mind your home is properly covered.
Get every available discount.
Insurers offer a variety of discounts to homeowners for everything from paying your annual premium in full up front to keeping your policy for more than three years. The biggest discount goes to new construction homeowners, but you may be able to shave off more by bundling your home and auto policies with the same insurer. The Milner Insurance Group has the capability to analyze your policies to make sure you have every discount possible.
For example, if you’ve upgraded your roof or windows in the past year, installed smoke detectors and fire extinguishers, or made energy-efficient upgrades, you may be entitled to additional deductions.
Discuss your policy annually.
Before you start looking at ways to cut your insurance costs, it’s important to understand what your current policy covers. Even though insurers have tried to make their contracts easier to digest, those thick renewal documents can still be confusing, but we can help. Homeowners insurance is our bread and butter and we can advise you on what you should add on, or eliminate, from your policy. Going through an independent agency like The Milner Insurance Group, rather than directly through an insurance company, gives you the opportunity to talk to us personally. You are part of our family, not just a number.
Bundle your accounts.
Bundling various policies with the same company typically saves you a percentage on your homeowners premium, according to data from the Insurance Information Institute. Although it could vary depending on your company, many insurers provide discounts if you buy more than one type of policy from them.
Build your credit score.
It may surprise you to learn that your credit score substantially impacts your home insurance premium. In most states, such as Florida, companies use a credit-based insurance score to determine your rates. The lower your score, the higher your rates. If you find that your credit score is low, read your credit report closely to identify any errors. You can elevate your score by taking steps like paying bills on time and reducing credit card balances.
Consider flood insurance.
The No. 1 thing for homeowners to know about flooding is that it’s the number one natural disaster risk in the United States. Ironically enough, a standard homeowners policy does not cover flooding or any rising water damage. If you are in a flood zone, your mortgage company will likely require you to obtain this coverage, especially in hurricane and storm prone south Florida. Even if you are not in a flood zone, it is a good idea to consider this coverage as it can be a large out of pocket expense if you are not properly covered in the event of a disaster.