Is it possible for every insurance carrier to save you money? They all bombard the consumer with radio, television and internet advertisement promoting "switch and we will save you money". The truth about saving money is about your type of home/dwelling, your coverage, where you live, and even your credit report. Each insurance company has different rates for different types of customers and if you match the ideal customer for that company, they offer their best rates.
Here is a list of ways to save on your home insurance policy:
1. Shop home coverage every year. Your age, your house's age, coverage limits, and seasonal events are all subject to change every year. A lot of insurance companies resubmit ratings to the state every year.
2. Only carry the minimums for your replacement cost or actual cash value. Have your current agent or an independent agent re-evaluate your home cost of replacement each year. Your mortgage company may require minimum coverage for 100% replacement cost.
3. Carry the minimums on coverage for liability and medical for others. This coverage is often included with the base policy, but ask for the companies minimum offering.
4. Maximize your deductible to match your willingness to pay out of pocket for small claims. Most insurance companies offer 1%, 2%, or even 5% deductible based on your dwelling coverage. (Deductible is the amount you must pay first before your insurance company covers a claim). I higher deductible means lower premiums.
5. Don't fall for the additional coverage options - unless you need peace of mind to have them and the rates are affordable. Glass coverage, septic backup, foundation coverage are all optional coverage and cost you more money.
6. Don't assume you have the best rates from you current insurance company. See tip #1.
7. Don't get lazy about shopping your insurance. With 1 call to an independent agent, they can do all the work to get rates from several companies at once.
8. Attempt to combine auto and home/renters policy from the same company. Most companies offer a multi policy discount.