What steps can you take to keep home insurance premiums down? This article will examine a recent increase in home insurance costs, And what is causing the increase.
A dramatic increase in the severity of natural disasters is one contributing factor. More than $100 billion in catastrophe-related losses have been paid by insurers. An average of about $700 million per month since 1990. Many small disasters have occurred such as wildfires, storms, ice, etc, on top of such well known events as hurricane Andrew. Virtually every part of the country is at risk for a billion dollar disaster.
Construction costs have seen sharp increases which are impacting insurance premiums. The average homeowner probably needs to carry additional coverage to cover the cost of replacing his or her home due to these increases. In fact, some 45 million U.S. homes are reportedly underinsured.
Yet another cost factor in rising insurance premiums is mold. Though mold and water damage in homes is nothing new, recent high profile lawsuits and insurance claims have the public more anxious about this issue. Insurance companies are taking steps to limit coverage before they're overwhelmed by claims related to water damage and mold. Premiums have already risen to cover the increasing number of mold claims.
Here are 5 ideas to save money on premiums.
1. Buy Your Home and Auto Policies From The Same Insurer
Discounts are available from some companies who sell homeowners, auto, and liability coverage. The discounts can be as much as 5 to 15 percent if you buy two or more policies.
2. Improve Your Home Security
You can qualify for discounts of at least 5 percent by installing a smoke detector, burglar alarm ,or dead-bolt locks.
3. Raising Your Deductible
You could save 15 to 30 percent or more by raising the deductible on your homeowners insurance. Keep in mind that if you raise your deductible you'll have more out of pocket expense in the event of a disaster. Weigh the options.
4. Get Fire Protection
By installing a sprinkler system and a fire and burglar alarm that signals the police, fire department, and other monitoring stations, you can qualify for savings of 15 to 20 percent on your premium. Find out what kind your insurer recommends, not every system qualifies for a discount. Find out how much the device costs, and how much you will save on premiums. Once you know how much you'll save you can decide if it's worth the cost to install the system. Remember You'll also be protecting your home and your family.
5. Be Smoke Free
You could qualify for an additional discount, i f nobody in your household smokes. Let your insurance company know if your home is smoke free.
There can be a big difference from one insurer to the next, so always comparison shop. Get quotes from several companies. Following these ideas could save you a substantial amount of money. - 29971
A dramatic increase in the severity of natural disasters is one contributing factor. More than $100 billion in catastrophe-related losses have been paid by insurers. An average of about $700 million per month since 1990. Many small disasters have occurred such as wildfires, storms, ice, etc, on top of such well known events as hurricane Andrew. Virtually every part of the country is at risk for a billion dollar disaster.
Construction costs have seen sharp increases which are impacting insurance premiums. The average homeowner probably needs to carry additional coverage to cover the cost of replacing his or her home due to these increases. In fact, some 45 million U.S. homes are reportedly underinsured.
Yet another cost factor in rising insurance premiums is mold. Though mold and water damage in homes is nothing new, recent high profile lawsuits and insurance claims have the public more anxious about this issue. Insurance companies are taking steps to limit coverage before they're overwhelmed by claims related to water damage and mold. Premiums have already risen to cover the increasing number of mold claims.
Here are 5 ideas to save money on premiums.
1. Buy Your Home and Auto Policies From The Same Insurer
Discounts are available from some companies who sell homeowners, auto, and liability coverage. The discounts can be as much as 5 to 15 percent if you buy two or more policies.
2. Improve Your Home Security
You can qualify for discounts of at least 5 percent by installing a smoke detector, burglar alarm ,or dead-bolt locks.
3. Raising Your Deductible
You could save 15 to 30 percent or more by raising the deductible on your homeowners insurance. Keep in mind that if you raise your deductible you'll have more out of pocket expense in the event of a disaster. Weigh the options.
4. Get Fire Protection
By installing a sprinkler system and a fire and burglar alarm that signals the police, fire department, and other monitoring stations, you can qualify for savings of 15 to 20 percent on your premium. Find out what kind your insurer recommends, not every system qualifies for a discount. Find out how much the device costs, and how much you will save on premiums. Once you know how much you'll save you can decide if it's worth the cost to install the system. Remember You'll also be protecting your home and your family.
5. Be Smoke Free
You could qualify for an additional discount, i f nobody in your household smokes. Let your insurance company know if your home is smoke free.
There can be a big difference from one insurer to the next, so always comparison shop. Get quotes from several companies. Following these ideas could save you a substantial amount of money. - 29971
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