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Helpful Tips to Reduce Homeowners Insurance Costs



If you would like to see the premium on your homeowners policy go down (And who wouldn't!) here are a few tips that could go a long way in reducing insurance costs:

*Raise your deductible!  If you currently have a $250 deductible, consider raising it to $500--or even $1,000--and you will see your homeowners premium go down.  After all, insurance is there to indemnify you in the event of  a costly loss; it's wise to self-insure for losses of $500 or less, or $1,000 or less.

*Consider multi-policy discounts.  Do you have your cars insured with another insurance company?  Consider moving them to the same insurer who insures your home; very often you will benefit from a multi-policy discount.  At Figley-Salz it's not even an option; our homeowners markets will not insure your home unless they also insure your autos.  That's a win/win!

*Reduce the risk of theft.  Consider installing a burglar alarm or at least dead bolt locks on all outside doors.  Many insurance companies will reward you for taking these security measures by lowering your premium.

*Ask about discounts for safety features such as sprinkler systems, burglar alarms, dead bolt locks, smoke detectors, and fire extinguishers.  Insurance underwriters are more apt to share the love if your home offers features like these! 

*In the event of a total loss, are you planning to rebuild your home exactly as it was?  Then you need to insure at Replacement Cost.  Thinking about replacing your home with a dwelling less costly?  Or maybe just taking the insurance settlement, putting the check in your pocket, and walking away?  Then you might wish to consider insuring at Actual Cash Value (ACV), which is cheaper than replacement cost.  Actual Cash Value is Replacement Cost minus depreciation.

*Loyalty often is rewarded.  Ask about discounts if you stay with the same insurance company for several years.

*Ask what other discounts are available.  For example, if you are over 55 and retired, you very well may qualify for lower rates. 

*Insure the house, not the land!  When deciding how much insurance to buy, don't factor in the cost of the land your home is on.  It is your home, not the land, that is at risk from the perils covered in your policy.

*Most important:  When you want to seriously reduce your homeowners insurance premium, always contact your agent for ideas and suggestions.  And we hope that agent is us!

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