You can lower the monthly premium on your homeowners insurance in 3 ways. We’ll discuss those ways but first let’s discuss what homeowners insurance is designed to cover.
Homeowners insurance is designed to cover a “sudden and accidental” loss. Homeowners insurance is not a maintenance policy and it will not cover damage due to wear and tear or old age. Homeowners insurance is the best value on the insurance market today. In most cases, for less than $100 per month, homeowners insurance will provide coverage to rebuild your entire house and replace all of your contents. Not to mention, homeowners insurance also provides liability coverage.
Tip 1 – Raise Your Deductible
The first way to save on homeowners insurance is to raise your deductible. You do not want to file small claims and if you plan to use your policy for the big event you might as well raise your deductible which reduces your premium. The standard deductible in Virginia is $1,000 but many policyholders are still carrying a $500 or even a $250 deductible. This does not make sense especially for those who can afford to pay more out of pocket. Contact your agent and see how much you can save by raising your deductible to $1,000, $2,500 or even $5,000.
Tip 2 – Package Policies
Most homeowners own a car or a couple of cars and insurance companies are pricing aggressively for package policies. If you insure your home and cars with the same insurance company you will receive a Multi-Line Discount (MLD) and this discount can be as much as 30% on each policy!
Tip 3 – Home Improvements and Safety Features
Older homes are more expensive to insure than new homes. Materials for older homes are more expensive and there is cost in removing debris and updating the house to comply with current building codes. If you have recently made home improvement to your roof, HVAC, electrical system or plumbing let your insurance company know. Also, if you have an alarm system or your house is “green” send the certificate to your insurance company and a discount will be applied.
The Andrew Agency
The Andrew Agency is an independent insurance agency serving clients in VA, MD, NC and SC. If you have questions about homeowners insurance, auto insurance or any other type of insurance contact The Andrew Agency at 804.320.2886 or visit www.theandrewagency.com.
