Illinois Home Insurance - How little tweaks can really bring your homeowner's premiums down!
Go shopping. It is a good idea to check with several different insurance companies when getting rate quotes. Talk to your friends and family and find out if they recommend their insurance carrier. Don't just limit yourself to companies in your hometown. If you have access to a computer, shop online from sites like illinicommunity.com . Another recommendation, don't stay with your current carrier just because you have "been with them for years", unless they offer a discount for keeping your business with them after a certain number of years. The Insurance market changes constantly and you may be paying too much premium with the carrier that you have "been with for years".
Look at your deductibles. When you have a loss the deductible is the amount you have to pay before your insurance starts to pay. In most cases the deductible starts at $250. You do have the option to raise that deductible to lower your premium. Here are some examples of the savings:
* $500 deductible saves you up to 12% on your premium
* $1,000 saves you up to 24%
* $2,500 saves you up to 30%
* $5,000 saves you up to 37%
Keep in mind however; you have to be able to pay the higher deductible should a loss occur.
Consider the insurance cost when purchasing a home. Something to consider when buying a new home is the cost of insuring it. If the home is newer the electrical, heating, plumbing and overall structure are like to be in better condition than an older home. There can be discounts and savings in buying a newer home.
Another thing to keep in mind when buying a home is the construction of the home and your geographical location. East Coast locations would need to consider if the home could withstand strong winds; West Coast, you need to consider the possibility of earthquakes.
Insure your home, not the land. The value of the land your home sits on is not a factor when deciding on how much to insure your home. Your home and contents are at risk from fire, theft, windstorm and other perils; your land however, is not.
Upgrade security and safety. By having such items as deadbolt locks, burglar alarms and smoke detectors can bring discounts of up to 5% each. The more sophisticated home-security systems can bring discounts of up to 15% or 20%. If this is something you are considering for your home, check with your agent to see which system earns you the most discount and which systems they recommend.
Quit smoking. There may be a discount given if no one in your home smokes. Smoking accidents contribute to over 23,000 residential fires every year.
Senior discounts. A 10% discount may be available if you are at least 55 years old and retired. Insurance companies have found that retired people have more time to maintain their homes, as well as spot fires sooner, than working people.
Group coverage. If you are part of an alumni or business association, you might ask your associations director if they are offered any discounts with their insurance company.
Loyalty. Some times it pays to be loyal. Check with your insurer to see if they offer any discounts for keeping your business with them. Some companies may offer a 5% discount if you have been with them for three to five years, and some as much as 10% after six years.
Annual review. Your insurance needs may change through the course of a year. You may add an addition or a garage, in which case you would need to increase your coverage. In other cases, such as selling a valuable piece of artwork, you may need to decrease the amount of coverage you have. Your policy should reflect the value of your home and personal belongings. It's important to review your policy each year to make sure you are insured properly.
Private insurance. People who live in high-risk areas might some times feel they will be forced to buy homeowners insurance from the state's high-risk insurance pool. An example would be if you live in a state that is susceptible to coastal storms, fires or crime. Check with an insurance agent first. You may still be able to purchase a policy in the private insurance market at a lower price.
Electronic Fund Transfer. If you have your payments automatically taken out of your account each month, versus mailing in your payment, you could save as much as $5. You may even have these automatic deductions come from your credit card, eliminating any worry on if the funds are there or not. You are also avoiding any late payments, which could result in a possible cancellation.
Credit Score. It might be beneficial to check out which insurance companies do not run credit checks. Many companies base your policy on the information they find when doing a credit check, which could result in an increased premium.
Replacement Cost Coverage. If you are not familiar with this term, let me explain. An example would be if your TV is worth $50 and you had a claim and had to purchase a new one, replacement cost would reimburse you the FULL VALUE of that item based on the cost of purchasing a new one. If you have Actual-cash-value coverage, this reimburses you for the cost of the property at the time of the loss MINUS the deductible. This can result in a lower claim payout than you would expect. The upfront cost for replacement cost maybe greater, but you will receive more accurate compensation for possessions.
If you have question regarding any of the topics discussed in this article, please feel free to contact us at www.illinicommunity.com. We would be happy to help you with any insurance needs you might have, or give you a free rate quote.
Illinois Home Insurance - How little tweaks can really bring your homeowner's premiums down!
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