Whether you own an expansive property or a small bungalow, homeowners insurance is a great idea. If you have a mortgage, the lending company will require that you have the unpaid balance covered under insurance. However, most people cover the entire value of the home in the event of a loss.
Unfortunately, the cost of a homeowners insurance policy has more than doubled in the last decade. On average, the annual premium cost is $952. Of course, this total differs from state to state, and depends upon a variety of factors like the value of your home, the risks for natural disasters, and any additional riders you want added to the policy.
A standard homeowners insurance policy protects the home and its contents from damage. This includes losses caused by fire, wind, and hail. The policy will state the specific replacement coverage, which is the maximum amount that the insurance company will pay if the home is damaged or completely destroyed. The greater the amount of coverage, the higher the premium amount.
The best way to reduce your homeowners insurance premium is with a discount. Your independent insurance agent will likely have several potential discounts available to you. For example, insurance companies encourage policyholders to bundle other policies together, like home and life insurance.
Your homeowners insurance company may offer life insurance policies directly, or have a relationship with a separate life insurance company. By purchasing a concurrent life insurance plan, you can save money on both policies. This is called bundling or the concurrent life and home insurance discount. If you already have both a homeowners insurance policy and life insurance coverage, ask with your insurance agent if you are eligible for a discount.
By having a homeowners and life insurance policy through the same company, you will likely have an overall cheaper rate than if you had each policy through a different insurer. The insurance company may also offer you an incentive to hold both forms of coverage for multiple years. They value your business and it would be very expensive for them to lose you to another carrier and spend money trying to sign new clients.
The amount that you can save will depend upon the coverage details of your homeowners and life insurance policies. You could save up to 30 percent on each policy premium. The discounted amount will vary depending upon your insurance provider. If you add your car insurance to the same insurer too, you would additional receive benefits from the multi-policy discount.
Aside from saving money, you’ll only have to pay a single bill each month instead of several since your home and life insurance policies will be through the same insurer. According to Investopedia, “when one company is handling all of your insurance policies, that’s less time that you must spend sorting through and paying each policy. As they say: time is money.”
Only using one insurance provider will also help you to gain additional familiarity with their other policies and discounts. Your insurance agent can provide additional assistance, as they will have the knowledge and expertise to explain the details of each policy you hold.
Don’t just look at the bottom line. Buying cheaper homeowners insurance through one insurer and an inexpensive life insurance policy through another insurer may not be the best plan in the long run. You need to find a policy that fits your needs, and then meet with your agent to discuss discounts.
Speak to your independent insurance agent today about the discounts they can offer you. Owning both a homeowners insurance policy and a life insurance policy provides peace of mind and saves you money.
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Enhanced Insurance is not written by attorneys. If you’re looking for legal advice, you need to contact a lawyer. Further, insurance practices and forms change constantly and are varied from state to state. For definitive answers in your area, contact a local agent.
While the majority of people want an agent involved in their purchase of insurance, many people want to see if they can save money by buying direct from the insurance company. Others want to try a direct quote to make sure the premium they’re now paying through their local agent is fair. If you want a quote for your coverage, click on the competitive quote button on the right side of this page.
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