Raise your deductible

A deductible is the amount of money that you are responsible for paying toward an insured loss. The higher your deductible, the more money you can save on your premium, so if you can pay above the minimum $500 or $1,000 deductible, for example, you may reduce the cost of your homeowners policy.

If you live in a disaster-prone area, your insurance policy may have a separate deductible for damage from major disasters, so be sure you take this into account when considering whether to raise your standard homeowners deductible.

Buy your home and auto policies from the same insurer

Many companies that sell homeowners insurance also sell auto insurance and umbrella liability policies. If you buy two or more insurance policies from the same provider, you may be able to reduce your premium. To be sure you’re getting the best price, make certain any combined price from one insurer is lower than buying the coverages separately from different companies.

Make your home more disaster resistant

If you live in a disaster prone area, you will have more insurance options to choose from if you take certain preparedness steps— for example, installing storm shutters and shatterproof glass or reinforcing your roof. Older homes can be retrofitted to make them better able to withstand earthquakes. Consider modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage. These precautions may prevent excessive damage and the related work and stress involved in rebuilding.

Do not confuse what you paid for your house with rebuilding costs

Your homeowners policy is based on the cost to rebuild your home, not its real estate value. While your house may be at risk from theft, windstorm, fire and the other perils, the land it sits on is not, so don’t include its value in deciding how much homeowners insurance to buy. If you do, you’ll pay a higher premium than you should.

Ask about discounts for home security devices

Most insurers provide discounts for security devices such as smoke detectors, burglar and fire alarm systems or dead-bolt locks. As some of these measures aren’t cheap and not every system qualifies for a discount, consult your insurance professional for recommendations.

Seek out other discounts

Types and levels of discounts vary from company to company and state to state. Ask your insurance professional about discounts that are available to you—for example, if you’re 55 years old and retired, or you modernize your plumbing or electrical systems, you may be qualify for a price break.

Skip small claims

It may be tempting to file a claim with your insurer even when something relatively minor happens. However, you may be better off in the long run if you pay out of pocket for these smaller expenses — some insurers offer discounts if you remain claim-free for a certain period of time, usually a few years.

How much can filing a claim affect your rates? Submitting a claim for wind damage raises your annual cost of insurance by about 9%, on average, according to a recent NerdWallet analysis. If the damage is relatively minor, you could end up paying more in rate increases than the insurer pays for your claim.

Get rid of high-risk stuff

Though it may be fun, having something your insurer deems an “attractive nuisance” — think trampolines, swimming pools or playground equipment — can add to your homeowners insurance premium.

An attractive nuisance is a feature on your property that children could be tempted to play on. If they get injured while doing so, you could be held legally responsible. Because insurers consider this a liability risk, getting rid of those items could save you money on homeowners insurance.

Review the value of your possessions and your policy limits annually

Review your home inventory and any upgrades to your house or condo. Make sure your homeowners or renters policy covers any major purchases or additions to your home and also check that you’re not spending money for coverage you don’t need. For example, if your five-year-old fur coat is no longer worth the $5,000 you paid for it, you’ll want to reduce or cancel your floater and pocket the difference.

Another great way to save money on your homeowners policy is to take into account the cost of insurance while you’re shopping for a house and before you buy.

Shop around

Rates for identical homeowners insurance coverage can vary widely from one company to the next. Some homeowners could save $1,000 or more a year by finding the cheapest rate.

Comparing different companies’ rates will let you see whether you might be able to save by switching insurers. You can also ask an independent insurance agent or broker to shop around on your behalf.

The post Tips to save money on your homeowners insurance appeared first on Ned Williams Insurance Group.

Renters insurance, typically seen as a safeguard for tenants, holds significant advantages for landlords as well. Surprisingly, by mandating renters insurance, landlords enhance their property protection while minimizing potential liabilities. Despite its numerous advantages, only a meager 37% of renters opt for insurance coverage, prompting many landlords to make it a requirement. Here’s a comprehensive look at why and how landlords can integrate renters insurance into their leasing agreements.

Renters insurance, a policy paid for by tenants leasing a residential space, extends coverage to various aspects, including:

1. Accidents & Natural Disasters: Coverage encompasses damages arising from plumbing mishaps, floods, fires, smoke, or instances of objects colliding with or falling on the property.

2. Malicious Actions: Insurance covers losses resulting from theft, vandalism, or civil disturbances that inflict damage to the property or the tenant’s personal belongings.

3. Liability: In case of injuries sustained on the premises, renters insurance can cover medical expenses and legal defense costs for the tenant.

4. Additional Living Expenses: It can cater to living expenses such as hotel bills if the property becomes uninhabitable due to unforeseen circumstances.

Benefits of Renters Insurance for Landlords:

1. Enhanced Security for Both Parties: Requiring renters insurance provides a sense of security for landlords and tenants alike. Typically, landlords won’t be held liable for tenants’ lost belongings, as renters can recuperate some losses through insurance, thus averting potential conflicts.

2. Cost Mitigation: While landlords maintain their insurance coverage for rental properties, they often face substantial deductibles and increased premiums when filing claims. Renters insurance bridges this gap by contributing to repair costs following significant disasters, thus saving landlords money in the long run.

3. Legal Protection: Renters insurance shields landlords from potential legal liabilities stemming from injuries sustained by guests or neighbors on the property, covering both legal fees and medical expenses.

4. Streamlined Tenant Screening: Requiring renters insurance streamlines the tenant screening process, attracting responsible tenants willing to invest in insurance coverage, thus minimizing risks associated with uninsured tenants.

5. Improved Landlord-Tenant Relations: Clear communication regarding the necessity of renters insurance fosters better landlord-tenant relationships. Tenants with insurance are typically more accountable for their belongings, reducing conflicts related to damages or liabilities.

6. Pet Liability Coverage: Renters insurance often includes pet liability coverage, alleviating concerns for landlords regarding potential damages or injuries caused by tenants’ pets.

Implementing Renters Insurance Requirements:

Requiring renters insurance is a straightforward process. Landlords should initially review local and state regulations to ensure legality. Once confirmed, landlords can include a renters insurance clause in lease agreements. Regular checks for proof of insurance, both for new tenants and lease renewals, ensure compliance and provide a gentle reminder for tenants to renew their policies, offering peace of mind for both parties regarding property and belongings’ protection.

The post How Landlords Can Benefit from Requiring Renters Insurance appeared first on Ned Williams Insurance Group.