Spencer’s Tips: How to Save Money And What You Need to know about your Homeowner’s Insurance | Spencer Insurance Agency, Inc

Spencer’s Tips: How to Save Money And What You Need to know about your Homeowner’s Insurance

By Charles J. Spencer, CLU

How to save on my Homeowner’s Insurance. . .

You are calling around to get quotes on your Homeowner’s Insurance with a goal of saving some money. You want to save money but not at the expense of losing valuable coverage. At Spencer Insurance we understand that price is important but we want to make sure you get the best price and great coverage too! As Independent Agents, representing many top rated insurance programs we can customize your insurance protection and still find you great rates. Here are some tips on how to save responsibly on your Homeowner’s Insurance:

1. Credit – Your credit score impacts you in many ways. Whether we like it or not credit also can impact your Homeowner’s Insurance rates. With many insurance companies your credit score will have a larger impact than your claims history. There are still a few companies that do not use your credit score to influence your rates, however even if you have bad credit get quotes from companies that do use credit scoring. Your price is not everything; you want to make sure you have the best coverage for your price.

2. Advanced Quote Discount – Don’t wait until the last minute to get a Homeowner’s Insurance quote. Many companies reward you with a discount if you get a quote at least 8 days prior to your expiration date of your Homeowner’s Insurance policy. If you let your coverage lapse and then get a quote you will pay more, especially if the policy has lapsed for over 30 days.

3. Increase your Deductible – Your deductible is the amount of money you pay out of your pocket when you have a claim. Raising your deductible will save you some money. Raise your deductible to what is reasonable for your financial situation.

4. Location, Location, Location – Just like with real estate, location is a very important. If you live in a coastal area your insurance rates will be higher due to the impact of wind damage. Insurance rates vary greatly from state to state. Check with your agent before you move to see what the impact will be on your Homeowner’s Insurance rates.

5. Multiple Policy Discount – Do you have a car insurance policy? Do you have an umbrella policy? If so do you have these policies with the same company as your Homeowner’s Insurance? If not, you are paying too much. You can be receiving discounts on both policies if you have them with one company. Check with your agent to see if you qualify for the multi-policy discount.

6. Don’t pay for coverage you don’t need – Check over your policy for coverage that is not important to you. Do you still have that art or stamp collection? Review your policy to find these unnecessary coverages.

7. Alarm Discounts – Does your home have a central station monitoring fire or burglary alarm? Does it have Sprinklers? Check with your agent to see if discounts are available for these alarms.

8. Any other credits? – Check with your agent to see if any other credits are available to you. Some examples are a new home discount and a new buyer discount.

What you need to know about your Homeowner’s Insurance Policy. . .

  • Replacement Cost vs. Actual Cash Value (ACV) – In the event of a loss your property can be covered two ways. Replacement Cost coverage will pay for your property to be repaired or replaced at today’s prices. If you have Actual Cash Value coverage your property will be repaired or replaced at today’s prices less an allowance for depreciation. If you have an old house the allowance for depreciation can be very costly to you. Review your policy to make sure you have Replacement Cost coverage.
  • Limitations – Some of your personal property items have limits in the event of a loss. For example money may be limited to $200 and the theft of jewelry may be limited to $1000. Check with your agent to find out what items have limits and how you can properly insure them.
  • Exclusions – All Homeowner’s policies have exclusions, so read your policy carefully. The most common exclusions are “Flood” and “Earthquake.” Other exclusions may include “wear and tear,” “intentional loss,” and “neglect.” Check with your agent to see how to find coverage for these excluded causes of loss.
  • Endorsements – Many coverages that are excluded can be added back to your policy by endorsement. Examples are “Earthquake Coverage,” “Identity Theft Coverage” and “Backup of Sewer and Drains/Sump Pump Coverage.” Review the endorsements available with your agent.
  • Insurance to Value – Can you rebuild your home with the amount of insurance on your home? Over time the cost to rebuild your home will increase due to many factors including increased material cost, increased labor cost and local municipal ordinances. Also, when replacing a home that was originally part of a large development, the new builder will need to work within your landscaping requirements and will not enjoy the discounts associated with building multiple homes. Only you can determine the correct replacement value. Discuss this topic with your agent as many companies provide guides.
  • Inventory your home – Imagine coming home and finding your home completely destroyed by fire. After taking care of your family’s immediate concerns of housing, food and clothing, you need to rebuild your home and replace all your personal items destroyed in the fire. How will you remember everything you owned? Take an inventory of your home. Most of us today have a cell phone that can take pictures and videos. Use this camera to take a video of everything in your home. For more information on how to do an inventory contact your agent.

As Independent Agents, Spencer Insurance Agency will do the research for you. We will pick the best coverage from a top rated company at a very competitive price. Call us today at 215-885-2200 for a no obligation quote or email us at info@spencerinsurance.com. At Spencer Insurance Agency, “Your Protection and Peace of Mind is our Only Business!”

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