Are you one of the two-thirds of American homeowners who are underinsured? The economy has made it more important than ever to cut back on spending, but reducing your homeowners coverage can lead to higher bills down the road if a covered event should happen. Rather, save by using these five tips!
1. Bundle policies: Bundling your insurance policies together with the same insurer gives that company the business it wants. In turn, you can save up to 15 percent on all of your policies across the board. The most common bundle is home, auto and life, but you can add anything from RVs to boats. This is the simplest way to start saving immediately.
2. Increase your deductible: It’s recommended that you increase your deductible to the highest amount you can afford to pay at any given time. Doing so will lower your monthly premium. For instance, if you increase your deductible from $500 to $1,000, you can save up to 25 percent every month. That gives you cash for the things you need now, as well as allowing you to save more for potential future disasters.
3. Ask for discounts: You may not get a discount unless you ask your agent if you’re eligible for one. Ask about loyalty discounts if you’ve been with the same insurer for a few years, senior discounts if you’re over age 55, home security discounts if your house has built-in safety features and home improvement discounts if you’ve updated your house. Generally, the less risky your home, the more you could potentially save.
4. Review your policy: Before renewing each year, take a moment to review your coverage with an agent. Ensure that any new renovations and major purchases are covered and adjust coverage for any items that you’ve gotten rid of or that have changed in value. For instance, if your $1,500 dollar computer has depreciated in value since you bought it, you should reduce any additional coverage you may own to reflect that lower value.
5. Retain good credit: Don’t be surprised if your agent informs you that your credit score will be used to calculate your premium. Request your free credit report annually to check for any errors that may need your attention and to make sure that your goals are on track. To maintain a good credit score, pay your bills on time and keep your credit balances as low as possible.
Ask us how you can save today. Call Crawford-Butz Insurance at 314-752-2500 for more information on St. Louis home insurance.