Homeowner's Insurance

Homeowner’s insurance is one of those things you do not think much about after you purchase a home and it’s absorbed into your monthly payment.  However, you still need to know what you are paying for and making sure it’s the best you can get for your money.  

Websites such as Arizona Department of Insurance www.id.state.az.us/  can provide you with up-to- date information.  You can also contact the National Association of Insurance Commissioners www.naic.org.  They have a consumer’s guide to home insurance that is very comprehensive.

Having a higher deductible and submitting fewer claims can add significant savings to your premium.  Raising your deductible from $500 to $1,000 can save you upwards of 25%. Many insurance companies will add a significant surcharge or even cancel your policy if you make too many small claims.  Just make sure you can afford the deductible in case you have a loss.  

Bundling homeowners and car policies can save between 5 to 15%.  Adding home security like smoke detectors, burglar alarms, and dead bolt locks can also save you about 5%.  Some companies will give you a discount if you and your family members are non smokers.  

Retirees may qualify for up to 10% off their premiums because insurance companies assume that they are home more often and will deter break-ins or fires.

Even though shopping around for insurance every few years is generally a good thing, staying with one company for three to five years can generate savings of 5% or 10% percent if you have been with them for six years.

Keeping the highest credit score can help keep costs lower.  Almost every cost now is tied into your credit score, so keeping that score above 750 can reap good economic benefits.