Homeowners insurance in Florida is often quite affordable, but there are ways that you can improve the policy and lower your premiums. Many homeowners do not realize that there are several different discounts available to them. These discounts can be applied to the cost of the premium, the actual cash value of the coverage, or any number of other things, depending upon your specific circumstances.
Raise your Deductible
In most homeowners insurance policies, the deductible is the amount that you pay first when making a claim before the insurer pays anything. The good news, though, is that insurers generally offer relatively easy-to-accomplish incentives that will shave hundreds of dollars off your premiums. Raising your deductible significantly lowers your monthly payment, yet leaves more money in your pocket at the end of the year that otherwise would go to your insurer.
Change your Insurer
How can you determine whether it is in your best interest to raise your deductible? The easiest way to do so is to shop around for a new homeowner’s insurance policy with a company that offers a discount for raising your deductible. Some companies will match up your deductible with a lower rate on your premium. Others will give you savings equal to your deductible, without reducing the total cost of your coverage. And some insurers will even take a percentage of your savings to offset the remainder of your premium, further decreasing your overall premium and saving you even more money.
Before you begin shopping around, be sure to sit down with an insurance agent who can explain the mechanics of these discounts in great detail. You’ll want to know how your deductible will affect your cost of coverage, as well as whether other discounts will also be applied to lowering your overall premium. You’ll also want to be clear on the types of discounts available and what they will mean to you. For example, are you eligible for discounts based on your credit history, occupation, or geographic location?
Bundle and Save
One of the most common discounts offered by many insurers is a reduced rate for those who maintain several policies with the same insurer. Generally, this means a lower annual deductible and higher premiums for the same policy. To take advantage of this policy deductible savings, however, you must maintain all of your policies with the same insurer. Simply transferring your insurance needs to another insurer will not result in any policy deductible savings. You must select a company that will work with you and your current insurer to create a new, co-insurance arrangement.
Get an Appraisal
Another common way to save money on your homeowners’ insurance premiums is to raise your home’s appraisal value. Most insurance companies will offer discounts to homeowners who have their homes appraised at more than a certain point. This means that you can actually raise your home’s value, which will result in an increase in your insurance premiums, and receive the discounts that you are eligible for. However, keep in mind that if your home is appraised at a lower value than your current property tax appraised value, you may be required to pay more in insurance premiums.
For more information about how The Sena Group can help you with any
of your insurance needs, please contact us at 561-391-4661.
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The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487