How to Save on Your Homeowner’s Insurance
Your home is one of your biggest assets, and it’s important to protect it with homeowner’s insurance. However, there are many choices out there. In Connecticut alone, there are over 100 insurance companies writing business! You could research them yourself but having a trusted advisor who knows the industry well is the best way to protect such an important asset. At Nicholas / Tobin Insurance, we pride ourselves on offering the best solutions to fit our client’s needs and budget.
You should be speaking with your insurance professional annually about whether there are better options available to you. Needs change over time. You may need to cancel or reduce coverage on riders for items that you no longer have or have reduced in value. Additionally, reviewing your policies annually allows you to make sure there are no gaps in your coverage and that you are taking advantage of savings that you may be eligible for.
Consider raising your deductible
Your deductible is the amount of money you will owe for your portion of a claim. Your insurance company pays the balance. The higher your deductible is, the lower your insurance cost will be. If you increase your deductible, it is important to make sure you can handle that higher amount in the event of a loss. Your insurance company will be expecting you to make necessary repairs in order to continue your insurance.
Bundle different types of insurances with one insurer
Often times, an insurance carrier will give you a discount for insuring both your home and auto. But you’ll want to make sure you compare quotes for both bundled and individual policies. This won’t always save you money, especially if you have a lot of traffic violations and poor credit. Obviously, you will want to make sure that this discount exceeds rates from other companies that you are considering individually.
Update your home to reduce risk of damage
Updating your plumbing, heating, or electrical systems may save you money on your premiums, especially if the upgrades will reduce risk of damage. Adding a new roof to your house may qualify you for a discount. Even something as simple as adding a water sensor to areas where water damage could possibly occur, such as near a washing machine or dishwasher, could save you money. Talk to your insurance professional at Nicholas / Tobin Insurance before you do any renovations so you can weigh the costs of installing new systems versus the cost of the savings.
Upgrade your security
Adding smoke detectors, alarm systems and dead bolt locks will save you money on your insurance. Additionally, if you install a sprinkler system or your monitoring system alerts the fire or police department, you will probably see even more savings, as homes with these types of systems typically have fewer losses. Again, if your reason for doing this is primarily to save on insurance, talk to your insurance professional at Nicholas / Tobin Insurance to make sure that it makes financial sense to do so.
Check to see if you are eligible for additional discounts
Are you a retiree? Non smoker? Live in a neighborhood with a homeowner’s association? Haven’t had a claim for the past 10 years? Depending on your insurer, you could receive discounts worth up to 20%. It is worth asking your insurance professional if your insurer offers these or any other discounts.
Be smart about your claims
Before you make a claim, consider the ramifications. If you file a lot of claims, you may see your rate go up at your renewals. We’re not saying to not file claims…the reason we have insurance is to help us pay for losses. However, it does play a part in determining premiums. Saving yourself a couple hundred dollars by filing claims for “little losses” may turn out to be a bigger hit come renewal time. Your insurance professional at Nicholas / Tobin Insurance can help advise you whether a claim is worth making or not.
Consider the impact of “attractive nuisances”
Planning to put in a pool? Thinking about purchasing a trampoline? These are considered “attractive nuisances” because they attract children, and if a child is injured on your property, even if trespassing, you likely will be held liable. Unfortunately, your rates will probably factor in that increased risk. You may want to consider purchasing an umbrella policy as well to counter this risk.
Work on improving your credit score
Many companies feel there is a correlation between how well you manage your money and how likely you are to file an insurance claim. Those with lower credit scores tend to file more claims than those with better scores. Having a good credit score usually saves you money on your premiums. If your credit score has room for improvement, you might consider trying these tips.
One of the best things about working with Nicholas / Tobin Insurance is that we do the legwork for you, taking into account your risks, financial exposures, and needs. Being insured properly is important. While trying to save on your insurance is important, it’s also important to make sure you are insured properly.
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Nicholas / Tobin Insurance, located in New Milford, Connecticut, provides its clients the highest quality insurance products and services available today to protect them, their families, and businesses. We offer homeowners insurance, renter’s insurance, car insurance, business insurance, travel insurance and more! Our commitment to service means our team of licensed insurance professionals is here to help with simple policy questions, consult with you to determine appropriate coverages and be available 24/7 when trouble strikes, and you need assistance managing through the claim process.
