Insurance companies determine risk for homeowners insurance in a variety of ways. They might look at the type of home owned (some newer homes have safer materials) and the area in which a home is located. The higher the risk, the higher your premium.
Topics Covered:
Money saving discounts
Deductibles
Have you insured your land?
Renovating? Building? Buying a new home?
Where do you live?
Re-evaluate your valuables
Fraud
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If at any time you have a question, need help or would like to see how much it would cost to insure your belongings with The R.L. Summers Insurance Agency, feel free to Get a Quote by calling 617-542-8432 or by clicking here to submit your contact information to us so we can service you.
Money saving discounts
Insurance companies often offer a number of special credits to help cut the cost of insurance because their customers have done something to reduce their risk. In some cases, these credits are a way to reward valuable customers for their loyalty and continued business.
These credits are described in general terms. You might want to check with us to find out the specific details of credits that your insurer offers.
- Homeowners association credit: Homes located in eligible homeowners associations may qualify for a credit. This is because homeowners in an association are likely to have a stronger sense of community and tend to watch out for one another. That means you've lowered your risk.
- Mature insured credit: If you or your spouse are retired, you could receive a credit on your policy. That's because retired people are likely to be home more often and may be able to prevent trouble -- like smelling an unusual odor from the furnace and shutting it off before it backfires soot into the home.
- Multi-policy credit: The Commerce Insurance Company saves you 15% on your homeowners premium when you insure both your auto and home with Commerce.
- Newer home credit: The age of your home may qualify you for savings because plumbing, heating, and electrical systems of newer homes have lower risks than outdated systems.
- Nonsmoker's credit: Studies show that homes inhabited by nonsmokers have a lower chance of having a fire. Your reduced risk may mean a reduced premium.
- Protective device credit: If your home has certain types of fire alarms, burglar alarms, locks, or smoke detectors, you've reduced your risk and may qualify for this credit.
- Renewal or long-term customer credits: You could get credit when you renew your policy, beginning with the first renewal or after you've been a policyholder for a designated number of years. (It's the good customer thing again!)
Deductibles
Ordinarily, the deductible amount (what you pay out of your own pocket before your insurance policy kicks in) on a homeowners policy is $250. By choosing a higher deductible ($500, $750, $1,000 or higher), you'll have lower annual premium payments.
Have you insured your land?
Sometimes the value of your land is incorrectly included as part of your dwelling coverage (also called Coverage A). Since homeowners policies don't provide protection for your land, it would be a waste of money to include its value as part of your Coverage A amount. Your Coverage A amount should only reflect the price it would cost to repair or replace your home's structure. If you aren't sure whether your land is also included, contact The R.L. Summers Insurance Agency to review your policy.
Renovating? Building? Buying a new home?
Certain building materials may cost less to insure or may qualify you for discounts. And choosing brick construction over a wooden frame structure -- or vice versa -- can make a difference if you live in areas where earthquakes or hurricanes frequently occur. Additionally, upgrading your electrical, plumbing, and heating systems could mean savings. Talk to a builder or The R.L. Summers Insurance Agency.
Where do you live?
If you live near your local fire department in a safe, quiet, easily accessible neighborhood, your homeowners rates might be lower than if your home is located 'off the beaten path.' Your home may cost more to insure if you are many miles from the nearest fire department.
Re-evaluate your valuables
If you bought additional insurance coverage for your valuable items, keep an eye on their value and adjust your coverage amount appropriately. Otherwise, some items that have decreased in value may be over insured.
Fraud
Did you know that fraud costs you about ten cents for every dollar you spend on insurance? Think about this: If you own a home and two cars and pay $1,800 for insurance each year, you'll have spent $900 on fraud in just five years. So, ask your state legislators to make the fight against insurance fraud one of their priorities. Report insurance fraud to the R.L. Summers Insurance Agency or your local police when you see or suspect it. Speak out against insurance fraud to your friends, family, and business associates. After all, it's not just the big insurance companies that pay. All those costs eventually filter down to you.
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