MONEY-SAVING STRATEGIES

GET A LIST OF DISCOUNTS

Insurance companies offer discounts to homeowners for improvements that make their homes a better risk. These include safety features such as indoor sprinklers, smoke detectors and dead bolts. Discount programs change frequently. If you haven’t spoken to your agent within the past year or you’ve made a major home improvement, you may be missing out on significant discounts.

INFORM YOUR AGENT ABOUT UPGRADES

Insurance companies like to insure homes with newer plumbing and electrical systems as well as burglar alarms and sprinkler systems because these features reduce the risk of fire and water damage. If you upgrade any of these systems in an older home, tell your insurance agent. One homeowner we spoke with called her agent to report recent plumbing upgrades, and after a short conversation, the agent raised her overall coverage by $50,000 and cut her yearly premium by $400.

THINK TWICE BEFORE FILING A CLAIM

Every time you file a claim, you risk higher insurance rates in the future. So in the long run, filing a claim can cost you more than you’d receive in a payout. Paying for a smaller loss yourself will almost always cost less than the premium increase you’ll face later. A good rule of thumb: Don’t file a claim if it’s worth less than $1,000 over your deductible. Statistically, if you file two claims in a threeyear period, or make claims related to maintenance issues such as a chronic leak, you risk triggering a rate hike or worse. Your insurance company may even drop you. Just inquiring about a claim (without even filing it!) could raise your rates.