At Portal Insurance, we understand that dealing with your insurance is not the best part of your day. In fact, it’s sometimes the thing you most hate doing. So, we are not going to sit here and act like that home insurance is the solution to all your pandemic problems.
But, if you own a home, your homeowners insurance can help you out big time during a recession or poor economy.
By helping with your bottom line.
Let’s face it, during times of economic stress, people cut back on luxuries. If you are a homeowner, you understand that your house is likely your biggest asset. So you understand that your home insurance protection is not a luxury. Based on this fact, lowering your home insurance premium can immediately help your budget. The faster you act, the sooner you save.
Let’s look at three ways to lower your home insurance premium.
- Shopping your home insurance
Home insurance rates go up, the price of milk goes up, the price of bread goes up and property taxes go up.
The key to this is, finding out if the rate increase is justified, or inflated. We see this all the time when new customers come to us for insurance quotes. They are amazed and confused with how we are saving them so much money on their home insurance.
The answer is simple.
They purchased a policy from an agent about 5-6 years ago, their rate went up every year at a slight 6%-15%, enough that they noticed, but not enough that they cared. The next thing they knew they were on the phone with Portal and we were telling them they were paying $1000 too much for home insurance.
This could be happening to you.
Your home insurance is likely the last thing you will do away with during an economic downturn. Thus, shopping your insurance is the best way to immediately impact your budget.
2.Requesting an insurance review
We know, most insurance agencies are not like Portal. Most insurance agencies try and sell you something every single chance they get.
Because of this, most customers avoid “insurance reviews”. Despite that, we recommend that you request a review of your home insurance every year. This is so your agent can look for gaps in your coverage and possible premium breaks.
There are several areas that your agent can find premium breaks for you. One example would be comparing your home insurance deductible to your preferred risk tolerance. This means if you don’t intend on filing any small $2000-$5000 claims, then your agent can raise your home insurance deductible to say $5000. This would mean that any claims below $5000 would be paid for by you out of pocket. This would also likely immediately lower your home insurance premium.
Another area your agent can likely take a look at is your dwelling coverage. Most home insurance companies have “inflation protection” on their policies. This causes the coverage amount on your house to increase a small amount every year to keep up with market inflation. It also ensures that you are not underinsured in the event of a home insurance claim. We are never going to advocate for someone lowering their coverage when it is not justified. But, there are cases where insurance companies can be a little too aggressive with their inflation protection. Thus causing a house to be over-insured with a need to changed back down to a justifiable amount. This should cause immediate savings in your home insurance premium.
3. Bundling your home and auto insurance
This is no surprise to many of you. Having your home insurance at the same agency or company that you have your auto insurance almost always results in savings.
Unfortunately, with the rise of auto-only companies like Geico that don’t write their own home insurance or home-only companies that don’t write auto insurance has led consumers down a path of keeping their home and auto insurance separate.
Many companies give 15%-30% discounts for having your home and auto insurance with the same carrier. Some even give discounts if your insurance is with the same agency but not the same carrier, in the event you are with an independent agent. This can result in immediate savings on your home insurance thus freeing up money in your budget.
Like we said in the beginning, Portal Insurance understands that insurance is a “vehicle” to get you where you want to be. A tool that helps you get to the “thing” (house, car, boat) that allows you to live your best life. We understand that we can’t be your pandemic hero, but we can help out just a little.
If you think we can feel free to give us a call at 251-264-3232 or click here.