How can I lower my homeowners insurance rates?

There are several things you can do. Let's look at a few of the basics...

1. Shop around! This one is always overlooked! When you get your auto insurance bill each month it's all to easy to see how your rate stacks up. However, because many people escrow their homeowners they don't pay any attention to it. Many people we talk to know exactly what they're paying for auto insurance but don't even know what they're paying for homeowners! When rates for people that escrow start to rise many of them don't even notice. Some might think it's a hassle to switch, but it's very easy and you'll see savings in your house payment right away!
2. Consider raising your deductible. This is the easiest way, but it obviously means if you have to file a claim you'll have to pay more out of your pocket. However, keep in mind that you definitely won't be making a claim every day! If you raise your deductible say from $500 to $1,000 you'll probably save enough to be able to justify if you had to pay a little more out of your pocket when filing a claim.
3. Make sure you take safety precautions with smoke detectors, locks and alarms. Of course you should have these in place for your own personal protection, but they also make a difference in your rates. These procautions help in more ways than one!
4. Multi-policy discounts. This is a pretty sizeable discount. You might get one or the other cheaper from different companies. However, when you net the two separate policies together you may not be seeing any real savings.

There are others out there if you know where to look. All companies will vary, so make sure you understand what discounts are available to you and what you have to do to get them!

Are all policies the same?

Homeowners insurance has two types of coverage:

1. Casualty provides protection for the dwelling and often the home's contents
2. Liability provides protection should someone be injured on your property.

All policies are not created equal. There are various levels of casualty coverage, from a very basic policy that provides a minimum coverage of the home only and no contents, to an expansive policy for older, historic homes. Liability coverage typically starts at $100,000, but greater coverage is available and often recommended, depending on your situation. Also look for extras like identity theft protection and higher limits for the classes of contents.

Who is covered by my policy?

As the insured, you and the members of your home are covered for the loss of the home and its contents. Third parties -- other people who come to your home -- are covered through the liability portion of the insurance policy for injuries caused by your negligence. In addition, you and the members of your household have some liability protection to others even while you are away from the premises.

With renter's insurance, it is important to note that coverage is only provided to the person named in the policy. Even if you share the premises with someone else -- if it is your insurance, the property of your "roommate" is not covered.

What riders are available?

There are a bunch, but you should focus on at least these two

1. Replacement Cost: In the event of a covered loss, you may be reimbursed for the cost you incur to replace many of your damaged contents with similar property, brand new. The total amount you'd be reimbursed is subject to the terms and conditions of your particular policy, including applicable deductible and coverage limits.



2. Scheduled Personal Property: Most insurance policies limit the coverage that is provided for personal property, especially certain categories of personal property. For example, in most policies jewelry is usually covered up to a certain amount but any individual item is only covered for a stated amount, regardless of actual value. There are also set limits for collections, furs, cameras, computer equipment and other items.

Why renters insurance?

As a renter you do not own the dwelling unit so you dont run the risk of losing it. However, you definitely risk losing your own personal property. What would you do if everything you owned were stolen or destroyed? What if someone was injured in your apartment, and is planning to sue. If you rent, your landlord's insurance policy doesn't cover any of your belongings or liability. That's why it's such a smart decision to get renters insurance, which protects both your property and your financial security.

Tip: Most people are very surprised to see just how inexpensive a renters policy really is! If you have car insurance you can even get a discount for having multiple line policies. Depending on the policy you get the multiple line discount may almost pay for the renters policy!