12 Ways to Save on Property Insurance

If you live in Florida, you know what a growing concern insurance has become. With the recent storms, financial crises and widespread industry chaos, individuals need to do whatever they can to protect their money and their homes. So what is one to do?

You can actually save on homeowners insurance in a number of ways, ranging from the type of building material used in your home to how close you live to a fire station. The potential ways for you to save may vary by company and location, but many are probably available to you — and at surprisingly little effort. Here are 12 ways you can save money on property insurance:

1. Shop around.

Check with many different insurance companies to get rate quotes. This is about as basic a money-saving tip as there is, but a lot of people simply don’t take advantage of what’s out there. You’d shop around for the best Florida home loan rates, right?

This is the same deal. Are your friends and family happy with their company? What kind of rates are they getting? Check the Internet for online quotes, too. You might be pleasantly surprised.

2. Bump up your deductible.

The deductible is the amount of money you have to contribute toward a loss before your Florida property insurance kicks in. Typically, a deductible will start around $250. What many people don’t know is that by upping the amount of your deductible, you can initiate a reduction in premiums right off the bat. If you increase your deductible to:

• $500… you can save up to 12 percent
• $1,000… you can save up to 24 percent
• $2,500… you can save up to 30 percent
• $5,000… you can save up to 37 percent

Of course, it’s important to make sure you can afford to pay the higher deductible out of pocket if something does happen. Which it might.

3. Get your home and auto insurance policies from the same place.

It’s pretty common in the industry for many companies to give a discount if you buy both homeowners and auto coverage from them.

4. Quit smoking.

What? Believe it or not, smoking accidents account for more than 23,000 residential fires every year. Some insurers actually offer to reduce your premiums if no one in the home smokes. So stop!

5. Consider insurance when buying a home.

You have to get it. We’re not talking about that. We mean considering how the home is structured and how that is likely to play into future claims. If you’re a first-time buyer in particular, think about how much insuring the home is going to cost. A newer home’s electrical, heating and plumbing systems and overall structure are likely to be in better condition than those of an older home, which can lead to a discount. You’ll also want to consider construction of the home and where you live. Especially if you live on coast, you’ll obviously want the house to be able to stand up to wind damage and heavy rains.

6. Improve security and safety.

Items such as alarms and smoke detectors usually can bring discounts of 5 percent each, depending on the company. Your property insurance company may also offer a significant discount of 15-20 percent if you install a state-of-the-art home-security system. Check with your insurance rep to see which systems they recommend and which will earn you a discount.

7. Insure your home, not the land.

While your home and its contents are at risk from fire, theft, windstorms and other perils, the land your home sits on is not. Do not include the value of the land in deciding how much insurance you need to buy.

8. Stay with one firm.

If you keep your homeowners insurance coverage with a company for several years, you may receive special consideration. Several insurers will reduce their premiums by 5 percent after staying with them for 3-5 years, while some companies will discount you as much as 10 percent after six years. It’s worth it to establish loyalty.

9. Senior discount potential.

Insurance companies have found that retirees stay home more and spot fires sooner than working people. Older folks also have more time for maintaining their homes. If you’re at least 55, you might qualify for a discount of as much as 10 percent. You won’t know if you don’t ask.

10. Group coverage.

Alumni and business associations often work out insurance deals with an insurance company, which includes a discount for association members.

11. Look for private insurance first.

If you live in a high-risk area and think you’ll be forced to buy coverage from your state’s high-risk insurance pool — in Florida, this has led to higher premiums due to the never-ending deluge of storms and the ensuing Citizens quagmire. Check first with an agent to see if you can avoid it. You may find that you can still buy insurance at a lower price in the private insurance market than from the insurer of last resort.

12. Check your policy. Annually.

You want your policy to reflect the value of your home and belongings, so by reviewing your policy every year, you’ll be able to make adjustments. If you just sold a valuable painting, for instance, you won’t need the same amount of coverage. But if you built a garage, on the other hand, you might need to increase your coverage. Combined with higher Florida home loan payments and energy costs, insurance is a major burden on homeowners. Do what you can to reduce it!