Helping your homeowners save on insurance

“Ask questions. New homeowners won’t know everything, ask questions, understand what you’re paying for, what types of coverage, liabilities, etc., all the parts of the policy. Sometimes you don’t know you’re paying for it until you need it, or find out you don’t have it when you need,” said Laura Adams, senior insurance analyst at insuranceQuotes.

Adams offered advice for homeowners to save on their insurance for you to pass along to your clients.

Adams’ said her top tip is to bundle insurance, like home and auto. “It varies where you live, but the average saving is 16 percent nationwide. Getting that the coverage with the same insurance company will give you a discount,” she said. “Still shop them both ways, as a bundle and single, but typically, a bundle is cheaper.”

She also recommended homeowners raise their deductible as an easy way to save. “We found that you’re going to save 7 percent increasing from $500 to $1,000 nationwide, and you’ll save 16 percent if you go up to $2,000. If you go up to $5,000, you’ll save 28 percent on average nationwide,” she said.

However, she said shopping around is the best way to save money. “It’s really our only defense as consumers when the rates go up. Shop and compare and look at the marketplace. Rates are changing all the time, depending on what’s going on across the country. If you get in a routine annually, it’s a good way to think about shopping and reevaluating your insurance. Looking on an annual basis is smart and see what else is out there. There is one misconception that people think they can only shop when their policy expires. There is no financial consequence to shopping.You will get refunded even if you have prepaid if you switch insurance companies. That is something a lot of people don’t know or forget,” she said. Adams advised always checking at the same time each year, whether it be your birthday or the new year so that you remember to do it.

Yet, if you’re happy with your insurance company, Adams suggested telling the company you are shopping around. Check in and make sure there are no additional discounts you are not taking advantage of, such a home security system you added after your policy started.

Making small claims should be avoided, she said. Use your insurance for financial catastrophes, because small claims can make your insurance go up, she advised.

Adams also reminded homeowners that credit is a part of insurance. “Your credit will influence the rate for home and auto. Your credit has a much wider, far-reaching than the rate you get on a credit card. People sort of drop out of the credit world because they don’t want credit cards, they don’t understand they are hurting themselves when it comes to insurance. I see people either misunderstanding or not getting the importance of credit and how it relates to insurance,” she said.