- Never buy homeowners insurance from a company you have never heard of before! It is very important to protect your valuable home with a financially strong and responsible company that actually has the ability and reputation of taking care of large (even) catastrophic claims. You will only end up saving a few dollars a year at best anyways.
- Make sure you are purchasing a Homeowners Insurance Policy and not just a Fire Insurance Policy. Some plans only cover Fire only (that is why they can be so cheap!). Make sure with your agent that the “Homeowners” policy you are being offered is a comprehensive policy that covers your liability and other perils such as theft and vandalism.
- Go over your deductible and coverage options with your agent: Since your home is very valuable to you it is important to have the right coverage to protect it. It is also important to have a policy that is affordable and within your budget as well… therefore have your agent go over your deductible options. There are many deductible options so you can choose a deductible level that you can afford in case something serious happened. Having a very low deductible is the most common way people end up overpaying for homeowners insurance. See how going to a higher deductible can help you save money. Remember that in the worst case scenario having to pay a higher deductible in case of a claim is much better than having low coverage because having less coverage can cost you tens (or even hundreds) of thousands of money but having a higher deductible can only cost you an additional few thousand dollars if there is a claim.
- Consider combining your homeowners insurance with your auto insurance policy: Companies such as Farmers Insurance offers a very significant multi-policy discount which will save you money off both your home and auto insurance policies. Since you can receive a discount on both policies usually it is better to have your policies with the same company (that offers the multi-policy discount) than having your home and auto insurance policies with separate companies.
- Let your agent know what your profession is: Many companies offer a group discount which will reduce your overall premium! Some of these professions include: Teachers, Engineers, Nurses, Doctors, Dentists, Lawyers, Accountants, Police Officers, Fire Fighters and Scientists. Let your agent know what you do and see if you can qualify for this discount!
- See if you can afford earthquake insurance and umbrella policies: Since your mortgage company does not require earthquake insurance most homeowners do not have earthquake insurance (your homeowners policy does not cover any damage from earthquakes). Therefore ask your agent how much earthquake insurance is to see if it is within your budget. Also having an umbrella policy is a great way to protect yourself from a financial disaster in case your liability coverage on your auto and homeowners policy is not sufficient. Learn more here!
We hope these tips can help you protect your valuable home smartly. If you can think of any other tips please do not hesitate to let us know!
For your free homeowners insurance quote with Farmers please call us at 800-875-8712 or fill out the quote request form below! We will love to try to help you insure your home with quality and affordable insurance with Farmers.
