There are many ways in which a policy owner can cut the amount of premium that they are paying for their policy. This can be done by knowing how the premium is calculated, utilizing discounts that are available and modifying coverages and deductibles. There are many tools available to an insured that can be used to cut the amount of premium being paid.
The premium for a homeowners insurance policy can be different from insurer to insurer because it being calculated in different ways. There are many factors that are used to calculate the final premium that is being paid by the insured. Many insurance companies use the age of the house as well as when the utilities have been updated as a factor in the premium. Most all insurance companies also use an individual’s credit score and age as another factor that goes into the premium. However, some states only allow the use of a credit score as a discount on the policy. One factor that has a major affect on the premium is the amount of claims that have been made on the policy.
The best and easiest way to cut the premium being paid is to know what discounts can be applied to the policy. One of the biggest discounts that is available is called a multi-policy discount. This is a discount for having more than one policy with the same insurance company. Discounts are provided for having protective devices such as a smoke alarm, a dead bolt lock as well as a fire extinguisher. A discount can also be applied if an individual is a non-smoker or belongs to a group such as an alumni association. Discounts are designed to lower the cost of the premium because they are seen as decreasing the risk to the insurance carrier.
Another way to cut the amount of premium being paid is to modify the coverages and the deductible on the policy. Coverages can be increased or decreased to any amount that is based on the specific needs of the insured. The important thing to remember is to only get the amount of coverage that is required and do not pay for coverage that is not needed. The premium can also be cut by increasing the amount of the deductible that is paid. The deductible on a homeowners policy can range from $250 up to $1000 or more depending on what the insured is willing to pay. Since the deductible is paid before any insurance kicks in a higher deductible is less the insurer will have to pay out.
The premium being paid by an insured can be cut using various tools that are available at their disposal if they know where to look. The best place for an insured to look to cut the amount of premium being paid is to start at their current insurance company. They can make changes to an existing policy and offer discounts that may not be available at other insurance companies.