| Getting the Best Homeowner's Policy You Can |
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One of the greatest benefits of homeownership is homeowners insurance because it provides financial protection against major disasters. Because homeowners insurance is so important, you'll want to get the best and most affordable policy you can get, so here is a handy guide to getting the best possible policy to protect you, your family and your new home. * SHOP AROUND - Comparison shopping could save you money. Start with an agent or broker who currently insures your car, apart- ment or life. The more business you bring to an insurance compa- ny or a broker allows them to coordinate all of your policies for the best overall coverage. Bundling your home and auto policies from the same insurer could take five to 15 percent off your premium if you buy two or more policies from them. So check consumer guides, insurance agents, companies and online insurance quote services. In addition, some employers and professional associations administer group insurance programs that may offer a better deal than you can get elsewhere.* CONSIDER ALL INSURANCE BENEFITS - Once you have an idea of price ranges and know which companies have the lowest prices, then consider the level of service they can give you. The insurer you select should offer a fair price and deliver the quality service you would expect if you needed assistance in filing a claim. * MAKE SURE YOUR INSURANCE COMPANY IS STABLE - Check the financial stability of the companies you are considering with rating companies such as A.M. Best (www.ambest.com) or Standard & Poor`s (www.standardandpoors.com/ratings) or consult consumer magazines. When you've narrowed the field to three insurers, ask for price quotes. * RAISE YOUR DEDUCTIBLE - Deductibles are the amount of money you have to pay toward a loss before your insurance com- pany starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums. Nowadays, most insurance companies recommend a deductible of at least $500. If you can afford to raise your deductible to $1,000, you may save as much as 25 percent. * CALCULATE YOUR REBUILDING COSTS - Don't confuse your home's price with rebuilding costs. The land under your house isn't at risk from theft, windstorm, fire and the other perils cov- ered in your homeowners policy. So don't include its value in deciding how much homeowners insurance to buy. * WORK WITH YOUR AGENT OR BROKER - Find out from your insurance agent or company representative what steps you can take to make your home more resistant to fire, windstorms and other natural disasters. * INSTALL A HOME SECURITY SYSTEM - Ask if your insurer offers discounts for additional smoke detectors or a burglar alarm system. * SEEK OUT OTHER DISCOUNTS - Different insurance compa- nies offer several types of discounts, but they don't all offer the same discount or the same amount of discount in all states. For example, since retired people stay at home more than working people they are less likely to be burglarized and may spot fires sooner, too. Retired people also have more time for maintaining their homes. If you're at least 55 years old and retired, you may qualify for a discount of up to ten percent at some companies. * MAINTAIN A GOOD CREDIT RECORD - Establishing a solid credit history often can cut your insurance costs. Insurers are increasingly using credit information to price homeowners insurance policies. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate. * ASK ABOUT LONG - TERM DISCOUNTS - If you've kept your coverage with a company for several years, you may receive a special discount for being a long-term policyholder. Some insur- ers will reduce their premiums by five percent if you stay with them for three to five years and by ten percent if you remain a policyholder for six or more years. However, make certain to periodically compare this price with other policies. ***** PUBLISHED AUGUEST 15, 2009
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