One of our goals is to keep your cost as low as possible without sacrificing coverage that you need.
SAVING MONEY ON HOME INSURANCE
Package Policy Discounts
Most companies offer a discount for having both your home and your auto insurance with the same company.
Deductibles
Get several options from the agent. Examine the discount for higher deductibles relative to how much higher the deducible is. I find that this varies quite a bit from company to company. Don’t assume a $1,000 deductible is the best buy with all companies. Avoid taking on a deductible that is higher than your emergency fund.
Rebuilding
Also see“Asking The Right Questions,”for additional info on rebuilding
It always good to ask yourself, “would I go through the rebuilding process if my home were destroyed”? If the answer is yes, you should be very certain that you have plenty of coverage to rebuild. The best way to save money may be to make certain you have plenty of money to rebuild. Over the years I have had many customers tell me that they think they are over-insured. Keep in mind that most policies that we sell are intended to rebuild your home. The market value of a home and the cost to rebuild your home are usually two totally different amounts. On the other hand, if you have no intention of rebuilding, it is OK to ask the agent to be as conservative as possible on the dwelling amount as long as you don’t give up your replacement coverage (see my link on“Asking The Right Questions”) and as long as you stay within the companies rules and guidelines for rebuilding.
Some companies also offer “Market Value” policies that agree to settle a claim based upon your market value rather than the cost to rebuild. These policies can be a good way to cut cost but don forget to ask the right questions (see my link on “Asking The Right Questions).
Other Discount
Most companies offer discounts for alarm systems, newer homes and for customer who are 55 and retired.