Insuring Your New Home
Insurance has gotten very competitive in recent years. It’s worthwhile to shop around and compare the price you’ll pay for homeowner's insurance through different firms. You will be shocked to learn how much it can vary from company to company. Ask to get a quote from the firm you currently use, but besure to do your research on the web, in the yellowpages and make a few phone calls to competing firms.
Shopping around
A few phone calls or online inqueries can save you a good chunk of money. Because you’ll pay premiums as long as you own the house, these savings come in year after year. Other ways to do research include calling your state insurance department, checking consumer guides, consulting online brokers that aggregate offers from multiple vendors, and simply asking friends that have gone through this effort themselves.
This will give you an idea of price ranges and tell you which companies have the lowest prices. You can also check Consumer Reports to find the annual rankings of insurance companies according to responsiveness and customer satisfaction. When you've narrowed the field to three insurers, get price quotes.
What’s the right deductible?
Deductibles represent the money you will have to pay out-of-pocket towards a loss before your insurance company starts to pay. Deductibles on homeowner’s policies typically start at $250. By increasing your deductible to $500, you might save as much as 12 percent; $1,000, up to 24 percent; $2,500, up to 30 percent; and $5,000, up to 37 percent, depending on the insurance company you use.
Consider getting all your insurance services from one vendor
Some companies that sell homeowner’s, auto, and liability coverage will discount your premiums by 5 to 15 percent if you buy two or more policies from them.
Comparing potential homes to buy
It's always worthwhile to get an insurance quote before making an offer. Even though two houses may seem similar on the outside, they may have very different insurance costs. Insuring new a new home may be as much as 8 to 15 percent cheaper because of the new electrical, heating, and plumbing systems, as well as overall condition. Home insurance also varies by location and will be higher in high-risk areas - for example flood plains, earthquake zones, or other disaster areas.
Other ways to save
You can often get discounts of 5 percent or more for a variety of safety enhancements, such as a smoke detector, burglar alarm, or dead-bolt locks. Also, alumni and business associations often work out package deals with an insurance companies. Ask your association if any insurerers are offering a discounts to alumni members. If you've had coverage with the same company for several years, you may receive special consideration. Some insurers will reduce their premiums by 5% if you stay with them for three to five years and by 10 percent if you remain a policyholder for six years or more.