Hurricane insurance costs
Hurricane Insurance and Its Associated Costs
With the decline in economy, everyone wants to cut down on expenses, including insurance costs. However, although there is no magical way to save money on a householder’s policy, a few simple tips can be followed to reduce hurricane insurance costs, irrespective of the size of the house you have insured. It could be a cottage or a mansion, but the following suggestions will help you save a lot.
1. Club together your insurance policies. This means taking more than one policy from the same company. By taking a policy on your home and your automobile together, you will be entitled to a discount called the multi-line premium discount. This discount involves a reduction in the total insurance cost, including both, your automobile insurance as well as your hurricane insurance costs.
2. Stick to one insurance company. Loyalty pays – literally. By staying with one company for a number of years, one could enjoy benefits of loyalty. A discount of up to 3 to 5 percent is awarded for a minimum of 5 years, more percentage for a longer period of time. Since this discount varies over the number of years of loyalty, consult with your insurance agent as to how much of a discount you earn over time and reduce your hurricane insurance costs.
3. Evaluate your deductibles. Deductibles are nothing but amounts of money that you would need to pay personally for every claim on your hurricane insurance, which can become complicated at times. Increasing a deductible will save money on your premium, as savings increase with the higher amount of deductibles. When this scenario of paying from your pocket becomes unmanageable, it is advised to pay a lower deductible and higher premium. It should not be forgotten that the purpose of any insurance, including hurricane insurance, is to compensate you for a claim.
4. Installing safety devices at your home can be advantageous. Systems like burglar alarm or sprinklers can be beneficial. In fact, insurance companies prefer policy holders to install these devices to help protect their homes from miscreants and reward them with a low premium rate. Check with your insurance company the discounts offered for these safety measures before having them installed. Purchasing a company-approved system will be a good choice, as it will later save one the complications involved from purchasing faulty equipment.
5. Having a good credit score will benefit also in matters of hurricane insurance policies. Build up on your credit rating. Insurance policies offer discounts on home policy premiums to those with a respectable credit standing. Poor credit history carries a high rate of premium, since individuals with this rating submit more claims. Companies charge them more, in order to take care of the costs involved when they submit the claim.
6. Leading a holistic way of life adds to the benefits offered by insurance companies. For example, non-smokers tend to gain by way of discounts. A non-smoking household is a less risk factor and companies offer a better premium for these policy holders.
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