BENCH INSURANCE

Is it possible for every insurance carrier to save you money? We’re constantly bombarded with advertisements promising savings if we switch providers. However, the reality is that savings depend on various factors including your type of dwelling, coverage, location, and even your credit report. Each insurance company has different rates for different types of customers. If you fit the profile of their ideal customer, they offer their best rates.

Here are some strategies to save on your home insurance policy:

1. Annual Shopping: Insurance needs can change annually due to factors like age, home age, coverage limits, and seasonal events. Many insurance companies resubmit ratings to the state every year.

2. Minimum Coverage: Carry only the minimums for your replacement cost or actual cash value. Have your agent re-evaluate your home’s replacement cost each year. Your mortgage company may require minimum coverage for 100% replacement cost.

3. Liability and Medical Coverage: Carry the minimums on coverage for liability and medical for others. This coverage is often included with the base policy, but ask for the company’s minimum offering.

4. Deductible Maximization: Adjust 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. A higher deductible means lower premiums.

5. Avoid Unnecessary Coverage: Don’t fall for the additional coverage options unless you need them and the rates are affordable. Glass coverage, septic backup, foundation coverage are all optional and cost you more money.

6. Don’t Assume: Don’t assume you have the best rates from your current insurance company.

7. Shop Around: Don’t get complacent about shopping your insurance. An independent agent can get rates from several companies at once with just one call.

8. Combine Policies: Try to combine auto and home/renters policy from the same company. Most companies offer a multi-policy discount.

Remember, it’s your money. Make an effort to keep as much of it as you can.