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HOMEOWNERS INSURANCE -
Several discounts are available for homeowners insurance. Make sure you discuss with your insurance company all potential discounts that are available, so they can be included to reduce your premiums. And make sure you understand what all the added charges and endorsements are for, and if you really need them. Insurers are famous for assuming you want certain types of coverage that you may not consider necessary.
1. If you have a fire and/or burglary warning system discounts are available, particularly if the system is monitored by a central station monitoring company. Other protective devices like fire extinguishers, dead bolts, etc. may also provide discounts.
2. If your home is relatively new (usually less than ten years old) or has recently been fully renovated, you may receive a new home discount.
3. If your home meets certain building codes you may receive a discount. Additionally, if your city or county participates in a building code enforcement program an additional credit may be available.
4. If your home is made of fire resistant materials like brick or masonry discounts may be available.
5. If you live in a coastal state, you may receive one ore more discounts on the cost of hurricane and windstorm coverage if you have a windstorm inspection of your home done by a certified inspector. Some states even have a program that provides free inspections for homeowners. Check with your insurance company for details.
6. If you are a non-
7. Some insurance companies offer senior discounts on homeowner’s insurance. Sometimes teachers, members of the military, and other occupations may receive a discount. If you are married or widowed you may receive a discount. Check with your insurance company.
8. If you are claims free for an extended period of time you may receive a discount.
9. Combination policy, loyalty and payment discounts.
a. If you insure your home and vehicle with the same insurer you should receive
a multi-
b. Many companies will provide a discount based on being a long-
c. Check with your insurance company if they offer discounts for annual or semi-
10. On the negative side, if you have a certain breed of dog considered potentially dangerous, such as pit bulls, Dobermans, etc. you may have to pay extra for liability insurance. If you have a dog biting incident with any large dog your premiums are almost certain to rise.
Although homeowners insurance companies are regulated by your state insurance commission, their rate structures vary widely. So, it pays to shop around for the best rates, which could easily save you hundreds of dollars annually. When shopping, keep the following in mind:
1. Meet with two or three of the major homeowners insurance companies such as State Farm or Nationwide. Work with these companies to figure out what types and amounts of coverage are right for you. Once you decide what coverage you want, get a quote from each of the companies based on this coverage.
2. Using the coverage descriptions discussed above, contact other major insurance companies and get a quote. If you qualify because of prior experience in the Armed Services, make sure to contact USAA to see what they have to offer.
3. Using the coverage descriptions, contact two or three independent insurance agents to get quotes. Independent insurance agents generally represent several different less well known, but reputable, insurance companies that may offer better pricing.
4. Using your coverage descriptions, go to the Internet and apply for coverage with some of the better known insurance companies that sell over the Internet to get a rate quote. You may also want to visit sites like Insurance.com where several insurance companies are represented, and rates can be compared.
5. Now that you have decided what types of coverage and amounts you want, and
have found a lower-
a. Because of state regulation, it is rare that an insurer will fail and not be able to pay your claim, but it does happen. So if you have decided to deal with a less well known insurer, and they are represented by an independent insurance agent, have that agent demonstrate to you that the insurer is financially secure. This will generally be done by showing the rating an insurance company has received from an independent insurance rating agency. If the company is not represented by an independent agent, or you are still concerned, call the State Insurance Commission to inquire or do some research on the Internet at insurance company rating sites like Moodys.com and AMBest.com.
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