No one wants to pay more than they have to or more than they should for anything. The same should apply to homeowners insurance. I don’t know about you, but in my family we work hard for our money and want to spend as much of it as possible on fun activities and creating memories for our kids and not on unessential expenses. Any good insurance agent worth their salt should do everything possible to help you keep the cost of your insurance not only within your budget but as low as possible. Here are three things that help drive down the cost of your homeowners insurance.
- THE NEWER THE ROOF…THE CHEAPER THE INSURANCE
Not all do, but most insurance companies charge less the newer the roof is. If there are two identical homes, side by side, but one roof is eight years old and the other is brand new, the home with the new roof could same you hundreds of dollars a year in insurance premiums. Why is this? At least here in West Texas the weather is hard on roofs and the newer the roof is the more granules are still on the shingle which help to protect the shingle. When shingles age their ability to protect the roof and prevent leaks decreases every year and their ability to withstand hail and wind diminishes every year. Thus, the newer the shingle the cheaper the insurance.
- THE HIGHER THE DEDUCTIBLE…THE CHEAPER THE INSURANCE
Insurance companies offer a wide range of deductible options for you to choose from, but generally you can save money by increasing your willing to share in more of the cost of a potential claim. Let’s assume you have a hail storm destroy your roof and you need to get a new roof (needing a new roof due to a hail storm is a discussion for another time—Geesh). Most companies offer a percentage deductible like 1%, 2% and so on. If you home is insured for $150,000 and you have a 1% deductible your portion of the new rood is $1500 (1% of the amount the home is insured for). If your deductible is 2% you would pay the first $3,000 of the new roof and the insurance company would pay the rest, not to mention now your premiums will likely decrease because you have a new roof (see reason #1….BONUS). In this case the difference ibn deductible amounts is $1500 but that difference could lower your insurance $500.00 a year. Ibn essence if you go three years without a claim, you win! Don’t take my word for it, have an insurance agent run quotes for you with different deductible amounts and compare for yourself.
- USING A LOCAL INDEPENDENT AGENT…THE CHEAPER THE INSURANCE
By shopping and using a local independent insurance agent instead of captive agent (sorry for the industry lingo…) you likely will get a much better deal on your insurance rates. Why? Great question. A captive agent (State Farm, Allstate, Farmers, etc.) can only tell you what their respective company rates are and they will move mountains to convince you that their product is the best on the planet. However, calling a local independent insurance agent can open the windows of the insurance word to you. They will be able to tell you what the rates and coverages are for multiple companies, large companies like Nationwide, Safeco, Travelers and even smaller companies that you may of not heard of. If you really want to see if you are getting the cheapest insurance possible, you should be working with an independent insurance agent.
The bottom line is, you shouldn’t pay more for your insurance than you have to. These three pieces will help you get the best deal possible on your insurance and continue to drive down your rates.
If you have appreciated this article and you are interested in working with an independent insurance agent, please give us a call to see how cheap we can get your homeowners insurance. (806) 762-0544 or e-mail us at firstname.lastname@example.org