Nowadays, especially in the current economy, people are always looking for ways to cut expenses. The common formula is to keep costs down while increasing income. Here at Farmer Brown we totally understand that mentality. T help our customers, we have come up with four ways our clients can save on their insurance premiums.
1. Shop around
Some insurance companies have been increasing premiums to recuperate from financial crisis and most of them are competing for new customers by offering lower rates. By shopping around people can find better deals or quotes for free. By connecting with an insurance agency who does all the work for you, you can get the numbers quickly by providing necessary information just once. That way, you can compare digits and assess how much coverage you conservatively need for a chance of lowering your monthly premiums.
2. Re-evaluate coverage amounts
Many policies have inflation protection provisions, which automatically increase coverage amounts. Especially for vacant buildings, condominium association insurance usually has this kind of provision. It always pays to review the coverage amounts every renewal and get good advice from your insurance agent. These people are willing to help and very knowledgeable, especially in terms of coverage assessments.
Quick Tip from the Insurance Institute Information: The land under your house isn’t at risk from theft, windstorm, fire and other perils covered in your policy. So make certain not to include its value in deciding how much insurance coverage to buy.
3. Increase property deductibles
The higher your deductibles, the lesser your monthly premium will be. According to IRMI, a deductible is an amount the insurer will deduct from the loss before paying up to its policy limits. Simply put, when your condominium association insurance has a huge deductible, you will have a cash-out of the deductible amount once a claim/loss is made – again, once a “claim/loss” is made. Here’s a good way to look at it: A monthly premium is a fixed expense. Therefore if you increase your deductible amount for the coverage, you will benefit of a lesser premium amount to pay each month; while in the fortuitous event a claim/loss happens, you only have to spend the deductible amount once it occurs.
4. Be a loyal client!
Aside from having one go-to company in case you require something, you have the opportunity to get discounts. Some insurers will reduce their premiums by 5-10% if you remain a policyholder for 5 years or more. In addition, if you have multiple policies from one insurer (ex. your apartment building insurance, condominium association insurance, and your auto policy.) Insurance carriers/agencies will consider offering you more good deals and packages to choose from.
“Everything in life has some risk, and what you have to actually learn to do is how to navigate it.”
– Reid Hoffman