Home insurance is something most of us have and an obligation we have to pay but are homeowners making the most of their insurance policies? It is estimated that 85% of homeowners have a home insurance policy, and the average amount paid is $1.445 per year.
In spite of the expense, there is no doubt that home insurance is worth it. If something happens to your home, you can lose everything without insurance. However, many homeowners are overinsured or are paying too much for the insurance they have. The following are ways you can pay less for home insurance and negotiate with home insurance providers before something happens and after you have filed a claim.
- Develop a Long-Term Relationship with Your Insurer
- Raise Your Deductible
- Secure Your Home
- Know Your Policy and Rights
- Find Opportunities for Discounts
- Develop a Strategy and Present Documents
- Know When to Hire a Public Insurance Adjuster
Before negotiating a specific settlement, it is good to be in a strong bargaining position. That means building trust with your insurance provider as a long-term customer. Before signing up with an insurance company, research options well and know the details of competing plans.
Once you have found a reliable insurer, use the same insurance company for home and auto insurance. In some cases, customers who buy auto and home insurance from the same company can save 10 to 15%.
Another way to be in a more credible negotiating position is to raise your deductible. This has the double advantage of decreasing your premiums, which can be reduced by 25% if your deductible is higher. It may make you seem more trustworthy to the insurance company.
A customer with a higher deductible, or the amount the policyholder has to pay before the insurance company begins, the less greedy the customer appears and the more likely a company is to honor their requests.
Provide reasons you should have a discount. For example, securing your home to prevent theft, adding storm shutters, reinforcing your roof, or retrofitting your home to protect against earthquakes may earn you some perks from the insurance companies. It will also convince the company that you did everything you could do to prevent damage should a mishap occur.
Research in-depth types of discounts that are offered that you may not be aware of. For instance, in some areas, retired people pay less in home insurance because they are presumed home more often and, therefore, reduce the likelihood of home break-ins.
Knowing your policy backward and forward before negotiating premiums or a settlement with an insurance provider is essential. Negotiating from a position of strength depends on how much you know about the policy It can also make negotiation more efficient because nothing needs to be explained.
Suppose you have had a mishap in your home and are unhappy with the insurance settlement. In that case, it is time to sit down, do some digging, and come up with a workable negotiation strategy before approaching your home insurance company. Again, it is helpful to find out from others what has worked for them in the past, especially from the same company.
Know when to bring in a third party. Just as a lawyer can help you win a case, a public insurance adjuster can assist you with your claim and negotiate with your insurance company. Look for an adjuster with a long track record of success.
Determination, knowledge, and a solid strategy can put you into a solid position to negotiate with insurance companies. Finding ways it has worked for others can be a key to getting more from your insurance policy.
