While your Houston homeowners insurance policy is a necessity, it’s also likely one of the most significant expenses you face as a residential property owner. The good news is that there are options available to lower your obligation, so let’s explore some of those ways.
Shop Around Each Term
Shopping around with at least three or more providers is good but usual advice. However, what’s often lost in this message is the importance of doing this each time your coverage is about to renew. There are certainly benefits to being loyal to a provider of insurance to Houston Homeowners, but it’s worth seeing what kind of rates are available to you. Even if you really prefer to stay with your current insurance company, competitive quotes may provide the leverage you need for a better deal from them.
Bundle Your Home Insurance
Insurance companies often provide rate discounts when you have multiple policies with them. This is done in order to keep your business but also because the more policies you have with them, the lower their risk. Consult with your insurer to see how much bundling can save, but remember to compare the cost of the individual policies as well since a higher premium may mitigate any savings.
Upgrade to Claim Insurance Discounts
Most insurance companies that offer Houston homeowners insurance policies offer a number of different discounts. Not all providers offer the same discounts, so that’s one advantage of shopping around. Note that in many cases, discounts can be retroactive, which means that you can purchase the policy and take advantage of the discounts later when you meet the requirements. Common upgrades that can result in a discount include architectural roofing shingles and monitored home security.
Build Your Credit
Statistics correlate good credit to less risk when it comes to a Houston homeowners insurance, so more and more companies are using that factor as a rate basis. You can help your rates not just by having a clean record but by maintaining a low debt ratio. Many credit experts recommend a debt ratio of 30 percent or less.
Increase Your Deductible
The deductible is the amount you have to spend toward a loss before your insurance company will pay out on a claim. Most insurers want a deductible of at least $500. That means that if you suffer $2,000 worth of roof damage during a storm, you’d pay $500 and the insurer would pay $1,500. By increasing the deductible from $500 to $1,000, some homeowners can save as much as 25 percent on the overall policy.
Be mindful that not all options are right for all homeowners. Increasing your deductible may cause you unnecessary financial risk and sometimes bundling can come at the cost of convenience and options. Explore all of the options available to you, and be sure to visit the quote form up top, which is a site that can help you learn more about the various options that insurers offer.