Is There Any Way to Save Money on My Insurance?

Well of course we’ve been asked:  Is there any way to save money on my insurance?

We understand that changing insurance agents can be frustrating and time consuming.  However, most people tend to ignore it once they have it.  This could be costing you considerable sums of money.  At Delta Risk Solutions we make this process as easy as possible.  We understand your hesitation to change and we’ll work diligently with your lending institutions and implement dealers to confirm you assets are properly covered.  While it is easy to make a mistake during a conversion you can be confident that you farm is properly covered.  It is easy to assume that insurance is something that’s a relative fixed cost, it’s not.  It can be lowered, often easily to help you save money.

The price you pay for your homeowners insurance can vary by hundreds of dollars, depending on the size of your house and the insurance company you buy your policy from. Here are some ways to save money. 

Shop Around

Prices vary from company to company, so it pays to shop around. Get at least three price quotes. Check the financial health of insurance companies by using ratings from independent rating agencies like A.M. Best and consulting consumer magazines. 

Get quotes from different types of insurance companies. Some sell through their own agents. These agencies have the same name as the insurance company. Some sell through independent agents who offer policies from several insurance companies. 

Do no shop price alone. Select an agent or company representative that takes the time to answer your questions. Remember, you'll be dealing with this company if you have an accident or other emergency. 

Raise Your Deductible

A deductible is the amount of money you have to pay toward a loss before your insurance company starts to pay a claim. The higher your deductible, the more money you save on your premium. Consider a deductible of at least $1,000. If you can afford to raise it to $2,500, you may save as much as 25 percent. 

In addition, pay close attention to how your deductible applies in the event of a loss.  Is your deductible per claim or per loss.  Some carriers will charge a deductible for each covered item instead of one deductible for the entire loss.  Please consult your agent to get a clear understanding.

Buy Your Agribusiness, Home, Auto and Life Policies from the Same Insurer

Some insurance companies will reduce your premium by 5 percent to 15 percent if you buy two or more insurance policies from them. 

Make Your Home More Disaster-resistant

Find out from your insurance agent or company representative what you can do to make your home more resistant to windstorms and other natural disasters. You may be able to save on your premiums by adding storm shutters and shatter-proof glass, reinforcing your roof or buying stronger roofing materials. Older homes can be retrofitted to make them better able to withstand earthquakes. In addition, consider modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage. 

Do Not Confuse What You Paid for Your House with Rebuilding Costs

The land under your house is not at risk from theft, windstorm, fire and the other perils covered in your homeowners policy. So don't include its value in deciding how much homeowners insurance to buy. If you do, you'll pay a higher premium than you should. In addition, the cost to rebuild or replace your home could be far greater than the price you purchased the home.  Discuss replacement cost and actual cash value terms of insurance with your agent. 

Ask About Discounts for Home Security Devices

You can usually get discounts of at least 5 percent for a smoke detector, burglar alarm or dead-bolt locks. Some companies may cut your premiums by as much as 15 or 20 percent if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations. However, these systems aren't cheap and not every system qualifies for a discount. Before you buy one, find out what kind your insurer recommends, how much the device would cost and how much you'd save on premiums. 

Seek Out Other Discounts

Many companies offer discounts, but they don't all offer the same types of discounts or the same level of discount in all states. Ask your agent or company representative about discounts available to you. For example, if you're at least 55 years old and retired, you may qualify for a discount of up to 10 percent at some companies. If you've completely modernized your plumbing or electrical system recently, some companies may also provide a price break. 

Review Policy Limits and the Value of Your Possessions Annually

You want your policy to cover any major purchases or additions to your home. But you don't want to spend money for coverage you don't need. If your five-year-old fur coat is no longer worth the $5,000 you paid for it, you'll want to reduce or cancel your floater (extra insurance for items whose full value is not covered by standard homeowners policies) and pocket the difference. 

Posted on July 4, 2015 .