9 Ways to Save on
Your Home Insurance
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Copyright © 2011. Culbertson Agency. All Rights Reserved.
9 Ways To Save Money On Your Home Insurance
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Table of Contents
1. Wind Mitigation Inspection!
3
2. Update Your Roofing!
4
3. Shutter Safety & Savings!
5
4. Alarm Yourself!
6
5. Increase Your Insurance Deductible!
7
6. Ensure Youʼre Not Over-Insured!
8
7. Types of Homeownerʼs Insurance Policies!
9
8. Additional Discounts on Home Insurance!
10
9. Take Measures to Improve Your Credit Score!
11
Learn more by visiting www.CulbertsonAgency.com or by calling (239) 210-7700.
Copyright © 2011. Culbertson Agency. All Rights Reserved.
9 Ways To Save Money On Your Home Insurance
1. Wind Mitigation Inspection
Welcome to sunny Florida! Here, we enjoy beautiful beaches, palm trees swaying in the
breeze…oh, and the occasional category 5 hurricane. If you are a homeowner in Florida
or any other area that requires windstorm insurance, you are all too aware of the
outrageous premiums we must pay in
order to live in our own homes. The
hurricanes of recent years have caused
many insurers to raise their prices, and
have caused you as a homeowner an
additional stress that doesn’t end with
hurricane season.
As a homeowner, you have a few options
to help compensate for this expense. The
most effective solution is to have a wind
mitigation inspection. This is one of the
easiest ways to reduce your insurance
premium by up to 45%.
So, what exactly does a wind mitigation
inspection entail? First, a certified expert
inspector will come to your property and
look for key features of your home that
indicate it will be less likely to be harmed
or catastrophically damaged during a
hurricane or strong wind storm. Then they
will inspect features such as concrete block construction, the presence of gable end
bracing, a hip roof, the presence of single or double roof straps, the presence of a
secondary water resistance barrier, and shutter and opening protection.
These items will all qualify a home for a wind mitigation certification. This means the
inspector will give your home a certificate stating that it is better equipped to endure
wind damage than a home lacking these features…and therefore, you should not have
to pay as much for insurance coverage! Since these types of structures suffer less wind
damage and are less likely to be a liability to the insurer, they are willing to lower their
fees.
In addition, the state of Florida mandates that insurance companies reduce their rates
for homes with certain wind mitigation features. So, if you possess a wind mitigation
certificate, you are guaranteed to pay less money per month than a homeowner who
does not. You may even qualify for a refund check from your insurer once you have had
your home inspected.
Make sure you take advantage of the money available to you. Contact us
about wind mitigation inspections or to get a FREE insurance quote.
Learn more by visiting www.CulbertsonAgency.com or by calling (239) 210-7700.
Copyright © 2011. Culbertson Agency. All Rights Reserved.
9 Ways To Save Money On Your Home Insurance
2. Update Your Roofing
We understand that homeowner’s insurance policies can be quite high if you live in
Florida. Especially if you live near the water! However, many Floridians do not know that
the wind mitigation inspection certificate can save you hundreds to thousands of dollars
on your homeowners insurance.
One thing the inspector will be looking for is updated roofing. Here are some tips for
roofing updates that will help you qualify for a discount on your insurance:
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•
At minimum, a roof must meet the 2001 building code to receive discounts on
insurance.
A hip roof shape is the most resistant to wind and therefore qualifies for greater
discounts.
The older the roof, the less chance that it is reinforced or tied down as well as it
could be.
If your shingle roof is more than 12 years old, consider replacing it. This could
result in huge savings on your insurance!
Shelling out money for a new
roof is not something that
anyone looks forward to.
However, if you take the time to
install a quality roof system for
what may be your most valued
possession, it will pay you back
in time.
Choosing a quality roof system
will not only raise your property
value, but it can also lower your
annual homeowners insurance
by up to 45%.
If a new roof cost you $15,000
dollars, and it lasts you 25
years, that is a cost of $600 per
year.
If it saves you that much on
your homeowners insurance
each year, it pays for itself!
Learn more by visiting www.CulbertsonAgency.com or by calling (239) 210-7700.
Copyright © 2011. Culbertson Agency. All Rights Reserved.
9 Ways To Save Money On Your Home Insurance
3. Shutter Safety & Savings
If you live in Florida, installing hurricane shutters is a smart decision. After watching the
impact of Category 4 and 5 hurricanes on coastal cities and towns, we realize how
quickly hurricanes can change paths and how devastating they can be. Sometimes
there may not be time to board up
the windows, and even if there is, this
may not be enough to keep your
home and family safe from flying
debris. However, shutter safety is not
the only reason to consider hurricane
shutters. You can also save money!
Florida law requires insurance
companies to offer homeowners
discounts or credits for protecting
your home and family from
hurricanes with shutters. They offer
discounts for existing building
features or home improvements that reduce damage and loss from hurricanes. Florida
insurance companies are required to file these discounts with the Office of Insurance
Regulation. Below is an excerpt from MySafeFloridaHome.com regarding applying for
hurricane shutter and similar discounts on your insurance.
1. Contact your agent or your company directly to find out the specific items for which
discounts are available.
2. Verify the amount of the discount for each item as it applies to YOUR policy. For
example: Hurricane shutters will result in a 30 percent discount on the windstorm
premium. The windstorm premium is $300 of the total $600 annual premium.
Therefore, the discount will equal a $90 annual savings on the premium.
3. Request the specific criteria that are needed to apply for and receive the discounts
that are listed for your company. Example: Does the roof need to be inspected by a
certified wind inspector? Do the shutters need to meet a specific wind resistance
rating?
4. Verify the documentation that needs to be submitted in order to apply for and
receive the discounts. Example: photos of the items installed, proof of purchase
and installation.
5. Verify to whom the documentation should be submitted. Be sure to keep copies of
all documentation, the date submitted and the mailing verification information.
6. Request confirmation of when the discount will take effect.
7. Verify if the discount will be in the form of a premium discount, a credit to your
premium balance or a refund on premium paid.
Shutters will help protect your home, family, and your wallet. To see if you
qualify for this discount on your home insurance, call us at (239) 210-7700.
Learn more by visiting www.CulbertsonAgency.com or by calling (239) 210-7700.
Copyright © 2011. Culbertson Agency. All Rights Reserved.
9 Ways To Save Money On Your Home Insurance
4. Alarm Yourself
A security alarm is a good idea,
regardless, as it helps to protect your
home and your family from potential breakins. The concept of a burglar alarm has
been around for generations. They
basically began as home made “booby
traps”, and have evolved into elaborate
alarm systems and home security systems
complete with video monitoring and
emergency call center alerting.
Any type of alarm system has the same
basic function…to alert you of an
unwanted intruder. They work on a simple
premise: once you arm the device, if the
perimeter of your home or property is
breached, the alarm is triggered.
Basic electronic alarm systems are built
into the doors and windows of your home,
and other points of entry. A series of metal
contacts transmit signals to the alarm’s
main receiver. Should a point of contact be
broken—the electric circuit is interrupted. If
you have a security system monitored by a
security company, a simultaneous alarm
alert is sent to the monitoring center either via a phone land-line or wirelessly.
As an added bonus, a security alarm will not only help save your home from break-ins…
it will also save you money!
The discount available to you will depend on your insurance company, as well as the
type of alarm system you choose. Typically, the discount structure is as follows:
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5% discount for installing dead-bolt locks.
5% discount for a simple burglar alarm or up to a 20% discount for more
sophisticated security systems, complete with a monitoring service.
Other safety & security devices, such as smoke detectors and sprinkler systems may
qualify you for even more discounts.
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Learn more by visiting www.CulbertsonAgency.com or by calling (239) 210-7700.
Copyright © 2011. Culbertson Agency. All Rights Reserved.
9 Ways To Save Money On Your Home Insurance
5. Increase Your Insurance Deductible
If you’re willing to take on a little more risk, it could save you a lot more money. Most
financial experts agree that increasing your insurance deductible on your homeowner’s
policy makes good financial sense. Just to clarify, the deductible is not to be confused
with your premium.
Deductible – This is the dollar amount of losses or damages that you, the policyholder,
pay before the insurance company starts paying – the amount that is your responsibility
to pay on any claim. For example, let’s say you file a claim that your insurer accepts for
$3,000. If your deductible is $250, the insurance company will pay $2,750.)
Premium – The amount you pay to keep your policy in force.
Most average homeowners insurance policies have a deductible of $250. If you were to
increase this deductible to $500, you would likely save about 10% on your premium.
(This may vary slightly depending on your insurer). Here is an example of the average
premium savings based on various increases in
deductibles:
If you increase your deductible from $250 to:
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$500 – you could save 10 to 12%.
$1,000 – you could save 20 to 25%.
$2,500 – you could save as much as 30%.
$5,000 – you could save as much as 37%.
Now, obviously, there is a bit of risk involved. If
you end up having to file a claim, you must be
prepared and able to afford the higher
deductible. Homeowner’s insurance is
designed to protect the contents of your home
from unforeseen damage or destruction.
However, if your deductible is too high, then
you could risk negating the benefits of
insurance in the first place.
Typically, for most people, it is worth it to have
a higher deductible, as insurance is for serious
losses. Paying out of pocket for relatively small
claims has additional benefits to keeping your
premium low. You will maintain a perfect, no-claim record, which keeps your premium
from increasing. The best way to approach insurance is to only use it for major claims
that you couldn’t possibly handle on your own.
Learn more by visiting www.CulbertsonAgency.com or by calling (239) 210-7700.
Copyright © 2011. Culbertson Agency. All Rights Reserved.
9 Ways To Save Money On Your Home Insurance
6. Ensure You’re Not Over-Insured
So, how much is enough when it comes to homeowners insurance?
The amount of homeowners insurance to buy should be a fairly straightforward matter
of getting ample coverage to rebuild your house and replace its contents in the event of
a total loss. You also want to protect yourself in case someone gets injured on your
property and tries to sue you for all you’re worth. But how much is enough to cover you
without going overboard?
Your home insurance coverage should not necessarily be what you paid for them home.
Land values are calculated into the final sales price of your home, but shouldn’t be part
of what you’re insuring. In others words, “you cannot hurt the dirt.” Companies will not
pay more than what it is going to cost to rebuild the home, so make sure you are
insured correctly. Here are some suggestions for calculating your homeowners
insurance.
Call local builders and ask them what new home construction cost per square foot is
going for. Multiply that number by your home’s square footage. The sum of this will be
the estimated amount that your home should be insured for.
Make sure you don’t have
a coverage that you
would never use!
Some insurance policies
may appear to be more
cost efficient, but in
reality, they may only be
covering you for things
that you would never use.
Make sure that this is not
the case, and that you are
not paying for additional
coverage of extremely
unlikely events, such as
sinkholes or riots.
Don’t purchase insurance that you don’t need. Instead, put your trust in honest
professionals that will:
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Not try to sell you the moon.
Treat you the way they want to be treated.
Put your needs first and work with your budget.
Be transparent & give you the opportunity to post your positive or negative reviews.
Learn more by visiting www.CulbertsonAgency.com or by calling (239) 210-7700.
Copyright © 2011. Culbertson Agency. All Rights Reserved.
9 Ways To Save Money On Your Home Insurance
7. Types of Homeowner’s Insurance Policies
In order to make the most of
your money when purchasing
homeowners insurance, you
need to know what the coverage
includes and how much you
actually need. Here are 8 types
of policies that are basically
industry standards. Each “HO”
refers to a different type of
policy, broken up by what they
cover and what they don’t.
HO-1: This is known as “basic” homeowners, and it is just that…basic. It is also
sometimes referred to as named-perils. It only protects against fire, lightning,
windstorms, explosions, riots, theft, vandalism, smoke, and volcanic eruptions. Because
it is so limited, many states are phasing out this kind of coverage.
HO-2: This policy covers a broader spectrum of perils. In addition to the perils named
above, this policy covers falling objects, weight of snow and ice, freezing of plumbing,
and damage caused by faulty electrical and heating systems
HO-3: This type of policy usually makes sense for most people. It costs more than
HO-1, but it is a lot more valuable. Instead of only specific perils, HO-3 policies protect
against all perils except the ones explicitly excluded from the policy. Earthquake, flood
protection, war, and nuclear accident are almost always excluded.
HO-4: This is a policy for renters. It will protect your possessions against the same 17
named perils in HO-3 coverage, but not the structure itself. You also usually don’t have
to buy liability protection with these policies.
HO-6: If you own a co-op or condominium, this insurance will cover personal property
and also provides liability coverage. However, like a renter’s policy, it doesn’t cover the
structure, since the building will have its own policy.
HO-8: It may be hard to get a guaranteed replacement policy if you have a beautifully
crafted older home. Insurers estimate that the cost of rebuilding an older home with the
original materials is prohibitively high. An HO-8 policy will cover you against the perils
designated in an HO-1 policy, promising to repair the damage, but not necessarily using
the same quality materials. Or, it will pay you the actual cash value of your home, minus
depreciation.
Need some help understanding the various types of homeowner’s policies?
Contact us for help finding the best protection for your home and family.
Learn more by visiting www.CulbertsonAgency.com or by calling (239) 210-7700.
Copyright © 2011. Culbertson Agency. All Rights Reserved.
9 Ways To Save Money On Your Home Insurance
8. Additional Discounts on Home Insurance
After you’ve taken all of the suggestions for keeping your homeowners premium as low
as possible, there may event be MORE discounts available to you! Ensure that you are
getting ALL of the credits that you may be eligible for. Here are a few to consider. We
may have covered some of these in previous tips, but we’ll include them as a reminder.
Senior Discount – If you are over 50, and aren’t afraid to admit it, you may be eligible
for a senior discount! This may also be called a “mature policyholder discount”. We
realize 50 is a little young to start throwing around the term “senior”, but no matter the
name, this is a nice discount. So, if you’re over 50, announce it loud and proud!
Multi-Policy Discount –
This is one of the most
common discounts, and
will save you money on
both your auto and home
insurance. If you combine
these two policies with the
same company, you’re
discounted a certain
percentage on both!
Security System
Discount – As we
discussed in Tip 4, an
alarm or security system
will qualify you for some
nice discounts on your
homeowners insurance.
Hurricane Shutters Discount – As discussed in Tip 3, protecting your home with
hurricane or safety shutters will also help to protect your wallet from high premiums!
Avoid Risks That Insurers Shun – There are certain risks that insurers are shying
away from. Avoiding these risks may result in a discounted policy. For example, owning
certain types of dogs (Rottweilers, Doberman Pinschers, Pit Bulls), can limit or void your
policy. Owning a swimming pool or a trampoline can increase your cost of coverage.
Make sure you read all the fine print in your policy under the “Conditions and
Coverages” sections so you know all the things that are excluded from coverage. You
may also opt to buy additional coverage to protect yourself from certain exposures.
Make sure you take advantage of the discounts that are available to you!
You can learn more about homeowners insurance discounts at
CulbertsonAgency.com.
Learn more by visiting www.CulbertsonAgency.com or by calling (239) 210-7700.
Copyright © 2011. Culbertson Agency. All Rights Reserved.
9 Ways To Save Money On Your Home Insurance
9. Take Measures to Improve Your Credit Score
Obviously, maintaining a good credit score is all around a good idea and makes life
easier when trying to make any major purchases. However, insurance companies are
also increasingly using credit information to price insurance policies. Here are a few tips
of important things you can do right now to begin improving your credit:
Check Your Credit Report – In order to repair your
credit, you have to know what’s wrong with it! If you
haven’t already, request a free copy of your credit report
on AnnualCreditReport.com and check it for errors. Your
credit report contains the data used to calculate your
score and it may contain errors. Check to make sure that
there are no late payments incorrectly listed for any of
your accounts. Also, ensure that the amounts owed for
each of your open accounts is correct. If you find errors
on any of your reports, you should dispute them with the
credit bureau and reporting agency.
Setup Payment Reminders or Automated Bill Pay –
On time payments are one of the biggest contributing
factors to your credit score. Some banks may offer
payment reminders through their online banking portals.
These will send you an email or text message reminding
you when a payment is due. An even more effective
method of ensuring your payments are on time is to enroll in automated bill pay through
either your credit card and loan providers OR through your bank. Most banks provide
online bill payment services that are free, and will allow you to set up automated
payments in whatever amount you would like.
Reduce the Amount of Debt You Owe – This may not be the easiest task, but it may
be necessary in moving forward. Reducing the amount that you owe will be far more
satisfying than improving your credit score. Here are a few steps to help you get started:
1. Stop using your credit cards!
2. Use your credit report to make a list of all of your accounts.
3. Go online or check recent statements to determine how much you owe on each
account and what interest rate they are charging you.
4. Develop a payment plan that puts most of your available budget for debt payments
towards the highest interest cards first, and maintain minimum payments on your
other accounts.
Want to learn more ways to save on your insurance? We’re here to answer
all of your questions and provide honest, free advice. Contact us about
your homeowners or other types of insurance today, and get a FREE quote.
Learn more by visiting www.CulbertsonAgency.com or by calling (239) 210-7700.
Copyright © 2011. Culbertson Agency. All Rights Reserved.