A home or property is a big investment, and it’s vital to protect that investment with the right insurance. However, that doesn’t mean you don’t have a choice in your coverage and your premium costs. Discussing your options with an insurance agent is a great way to discover how you can save money. We’ve rounded up several practical ways you can lower your premium to help get the conversation started.
1. Understand Your Deductible and Make Smart Choices for Your Needs
Your deductible is a big factor in your end premium cost, so it’s important to really understand this part of your policy. Put simply, your deductible is the amount of money you will pay out of pocket before your insurance coverage kicks in, in case of covered claims.
Generally, a lower deductible will lead to a higher premium, while a higher deductible will allow you to save on your annual costs. Another important factor – which you may not realize if you’ve never made a claim – is that the act of filing a claim can lead to increased premiums. This is because insurance carriers tend to reward policyholders who are proactive with home maintenance and improvement, while those who frequently file claims are seen as riskier. In fact, filing too many claims in too short a period of time can even make it difficult to find an insurance carrier.
What does this mean in terms of selecting your deductible? You should always make sure that your deductible is an amount you can comfortably pay if you need to file a claim – that is the most important consideration. However, you should also balance the amount you are able to pay with the savings you get from a higher deductible, and the knowledge that you typically want to avoid filing claims for smaller incidents.
Look for a carrier that offers you true choice in your deductible, with a real range of options on both the low and high end.
2. Choose a Carrier with More Flexibility
When you’re comparing insurance carriers, look for one that gives you flexibility. This could come in the form of optional perils or more coverage choices. It could also be more ways to control your premium, like a co-pay.
For some home and landlord insurance policies, Orion180 offers an optional co-pay, meaning it is completely your choice whether to add it to your policy or not. The co-pay is an amount that you would be responsible for covering, after the deductible applies. This can allow you to access even greater savings on your premium costs.
3. Explore Your Discount Opportunities
From claim-free discounts to discounts for military and first-responders, meaningful deals are a great way to save. You may qualify based on your property, like tree-free yard or tankless water heater discounts, or based on you and your actions, like home buyers or golden age discounts. Some carriers even offer discounts for bundling multiple policies with them. Orion180 offers a Companion Policy Discount on landlord insurance, for example.
4. Improve and Maintain Your Home
As mentioned above, filing a claim can lead to an increased premium. The best way to avoid this is to regularly maintain your home and take steps to improve it.
Improvement may mean bigger tasks, like proactively replacing your roof as it reaches the end of its useful life. This will also lower your premium because the age of home components like your roof or plumbing make your home riskier over time. Improvement can also be smaller tasks, like installing preventive devices. For example, Orion180 home insurance policyholders who install AWTOS, the Auto Water Turn-Off System, can save on their premium, among other benefits like improved coverage.
It is also important to prevent damage to your home. Regularly clearing your gutters, trimming overhanging tree branches, and checking for leaks can all prevent issues – and claims – in the future.
There are many factors that go into determining your insurance premium, but there are tools you can use to take control, especially with Orion180. We give you real choice, so you can fine tune your policy to your specific needs. A proactive approach to insurance not only saves money, but also ensures you have the right coverage when you need it most. Contact your agent today, or get a free quote here!
