|
How to Save Money on Homeowners Insurance
Premiums you pay for homeowners insurance can vary not only by
insurer but also by level of involvement in the insurance buying
process. Ohioians continue to pay some of the lowest insurance
premiums in the US. Ohio’s 2002 average premium ranking
is 47th lowest in comparison to other states and Washington DC.
The Ohio Department of Insurance (ODI) reports a 1.9% increase
filed by Ohio’s top 10 homeowners insurance writers in 2004.
The top 10 writers represent about 70% of Ohio’s homeowners
insurance market. This is substantially lower than the 10.3% in
2003.
You can take the following measures to help keep premiums affordable:
- Shop around. Contact several insurance companies and agencies
to discuss coverage, costs, claims handling and service. Check
company financial ratings for stability. Ask others for recommendations
and use the Web for reviewing potential insurers.
- Protect your home against typical perils. Routine maintenance
helps prevent claims, a leading cause of premium increases. These
include:
- Keep fire extinguishers in fire-prone areas such as the kitchen
and laundry.
- Modernize plumbing, heating and electrical services to reduce
the risk of fire and water damage.
- Regularly check your roof, down spouts and pipes for clogs
or leaks.
- Discourage crime by using exterior lights at night and deadbolt
locks.
- Repair loose railings, steps or walks.
- Raise your deductible. By raising your deductible, you’re
responsible for smaller losses, lowering your premium and chances
for frequent claims. Consider at least a $500 deductible. A $1,000
deductible will save you even more.
- Ask about discounts. Some companies provide discounts for new
construction, since newer homes are built to updated codes. Some
insurers offer discounts for monitored home security systems.
If you’ve had your home insured with the same company or
agency for several years, you may also be eligible for an additional
discount.
- Review policy annually. Update your coverage based on major
purchases or recent home improvements. Double-check how far your
home is from a water source such as a fire hydrant as well as
the location of the nearest fire station. If you carry a policy
endorsement on an item that’s depreciated, reduce or eliminate
the endorsement to save.
- Buy all insurance from the same source. Some insurers will
reduce premiums 5–15% by using them for all your insurance
needs.
- Check on group coverage resources. Check with employers, alumni
and professional trade groups who may offer insurance packages
at competitive rates.
- Don’t insure your land. Although it’s part of the
market value, it doesn’t require insurance protection.
- Opt for guaranteed replacement cost. Although more expensive,
it could save you money in the event of a major loss. A “replacement
cost” policy pays to replace the damaged property or loss,
regardless of its age and condition, with materials of similar
kind and quality. An “actual cash value” policy provides
reimbursement at the depreciated value.
- Contact the Ohio Department of Insurance for a Shopper's
Guide to homeowners insurance. It’s
a good resource for general information, including average
premiums by company. Download it from www.ohioinsurance.gov/consumserv/ocs/completeguides/completehomeguide.pdf.
- Avoid frivolous claims. Submitting a claim after years of paying
premiums is justifiable, but frequent claims may mark you as a
high risk. Pay for losses that are close to your deductible.
- Cover your home office. Don’t assume automatic coverage.
Protect special home business risks.
- Don’t smoke. Some insurers offer discounts to nonsmoking
households.
- Stay with your insurer. Some insurers reduce premiums by 5%
after three to five years, and up to 10% if you remain a policyholder
longer.
- Keep tabs on your credit. An insurance score is a snapshot
of your insurance risk based on information in your credit report.
It reflects your bill payment patterns over time, with more emphasis
on recent information. Some companies take insurance scores into
account when assessing homeowners insurance risk. Click here for
more information on credit bureaus and insurance scoring.
- Make insurance part of the homebuying process. Choosing a home
less prone to natural disasters or fire can mean a significant
savings.
 |
US residential real estate markets continue
to prosper, according to statistics released by the National
Association of Realtors in its first quarter 2005 report which
covers 136 metro areas. A record 66 of these experienced double-digit
jumps in home prices over the past year. The previous record
was 62 in the last quarter of 2004. Only six areas showed a
fall in prices and those declines were fairly modest. The median
price of a single-family home hit $188,800 at the end of the
first quarter, a rise of 9.7% compared with a year ago. |
|
