| One of the necessary expenses involved in | | | | policy. Therefore, including the land value will only |
| owning your home is insuring it. All homeowners | | | | increase your insurance premium unnecessarily. |
| should have it. If they don't, they're playing a very | | | | 6. Protect your home: By installing a sprinkler |
| dangerous game. Why run the risk of not insuring | | | | system and/or security system, you may earn a |
| one of the largest investments you'll ever make in | | | | premium discount of at least 5%. Call your |
| your life. One catastrophic loss and it's gone. | | | | insurance carrier for recommendations before you |
| In the process of buying insurance, we'd like to | | | | install your system. Let's face it, they have a |
| help you get the most for your money and save | | | | stake in the safety of your house and probably |
| whenever possible. We all work very hard to earn | | | | have first hand experience of the effectiveness |
| money, let's not give away more than we have | | | | of various systems. |
| to. Here are a few tips that will help you to save | | | | 7. Smoke Detectors: These devices are |
| money on your homeowner's policy: | | | | mandatory in some states, but if it's not |
| | | | mandatory in your state, buy one anyway. |
| 1. Know the difference: It is very important to | | | | They're cheap and they save lives and will help to |
| know the difference between a 'named peril' | | | | lower your premium (some carriers will not |
| policy vs. 'all risk'. A named peril is more restrictive | | | | provide insurance if the house is not equipped with |
| as a loss has to occur by one of the perils named | | | | a smoke detector). |
| in the policy. Conversely, an all risk policy is | | | | 8. Quit Smoking: Smoking is the leading cause of |
| covered for all risks except for those | | | | fire related deaths. Households with non smokers |
| occurrences excluded by the policy terms and | | | | pay a lower premium than those with smokers |
| conditions. All risk policies encompass more causes | | | | 9. Senior Discount: If you are retired and at least |
| of loss than a named peril policy and thus will cost | | | | 55 years old, there is a possibility that your |
| more. The cost, in my opinion, is worth it. If you | | | | insurance company may offer a senior discount. |
| can afford it, buy an all risk policy. | | | | 10. Longevity of relationship: Develop a long term |
| 2. Higher deductibles: If you currently have a $100 | | | | relationship with your insurance company: Several |
| or $250 deductible, depending on the regulations in | | | | companies offer discounts based on the number |
| your state, you could possibly save anywhere | | | | of years you've been with them. This may earn |
| from 5% to 25% on your annual premium by | | | | you anywhere from 5 to 10% |
| increasing the deductibles to as much as $1,000 | | | | 11. Group Coverage: In the world of insurance, |
| per occurrence. Discuss the optimal deductible | | | | group usually means cheaper. Check to see if |
| premium savings possibilities with your insurance | | | | there is an association you can join, such as an |
| agent. | | | | alumni or business association, where discounts |
| 3. Buy more than one policy from the same | | | | are offered to association members. |
| insurer: Enjoy the multi-policy discount that | | | | 12. Shop Around: This is the most important piece |
| insurance companies offer. If you buy at least | | | | of advice I can offer. Get quotes from several |
| two lines of coverage from the same insurance | | | | companies. Once you have the quotes, line them |
| company you may realize a discount of anywhere | | | | up side by side and compare. Do you homework |
| from 5 to 15%. | | | | about the insurance companies also. There's no |
| 4. Location, location, location: If you purchase a | | | | sense in having a great policy for a low premium |
| home in a flood zone, you will be required to buy | | | | and find out right as your house is burning to the |
| Federal Flood Insurance. Also the closer your | | | | ground that the insurance company is out of |
| house is to a firehouse the lower your premium. | | | | business. A.M. Best Company, a company that has |
| Difficulty in getting to your house in the event of | | | | been rating the financial condition of insurance |
| a fire is taken into consideration when determining | | | | companies since 1899, makes it easy to |
| risk and calculating premium. | | | | determine the solvency of your insurance |
| 5. Do not include the land when valuing your house | | | | company. |
| for insurance: The land your house sits on will not | | | | The internet has made it much easier to become |
| be damaged in the event of a windstorm, fire, | | | | educated on topic of insurance and be a savvy |
| theft or other policy peril covered under your | | | | buyer. Do your research before you buy. |