What You Can Do to Control the Cost of Insurance

Ask your insurance representative about the following options for lowering your premium:

• Increasing your deductible, or your share of the cost of a claim. By increasing the amount you are willing to pay, you will decrease your premium.
• Package deals for insuring your home and car(s) with the same insurance company.
• Installing a sprinkler system or a monitored burglar or fire alarm.
• Quitting smoking. Many home fires are caused by careless smoking. Many insurance companies acknowledge that non-smokers have a lower risk of fire loss.

In addition to shopping around and comparing prices and coverage, homeowners can further lower their insurance premium by:

• Building a consistent, claims-free track record.
• Not over-insuring the home by including the market price of the land in the insured value. Whatever the limits of your policy, you cannot claim for more than the actual loss to insured property. “Insured property” does not include the market value of underlying land. You should insure your home for what it would cost to rebuild it in the coming year (replacement costs). Don’t pay extra premiums for nothing.
• Asking about other discounts. For example, some insurance companies provide discounts for seniors.