Homeowner's Insurance Renewing Soon? Tips To Help Reduce Your Premiums
Posted on: 17 February 2022
As a homeowner, there are many responsibilities. If you are carefully budgeting your family's housing and living expenses, don't forget about your homeowner's insurance policy. It's a good idea to take a look at what other brokers may offer you before the next time your homeowner's insurance policy renews. Here are a few ways you may be able to save money by switching to a different homeowner's insurance policy.
Make sure your CLUE report is correct
The first thing you need to do is to make sure your Comprehensive Loss Underwriting Exchange (CLUE) report is correct. This is a report from a database of past claims that you've made against your homeowner's insurance policies. As with everything, there's a possibility that your CLUE report can contain errors that could cause your homeowner's insurance premiums to increase, sometimes substantially. If you find errors on your CLUE report, you can file a dispute to correct any errors.
Select a higher deductible
After you've made sure that your CLUE report is correct, delve into your financial situation and determine how much of a deductible you will be able to handle should any repairs need to be made in your home. The reason to do this is so that you can avoid filing small claims often, which can increase your premiums in the long run. Remember, the insurance company will look at your CLUE report before renewing your policy and may raise your premiums if you've made claims in the past.
By raising your deductible, you'll end up filing fewer claims against your policy, which will help keep your premiums low. The additional savings on your lower premiums can be put into your savings account or an emergency funds account to help you pay any repairs in the future, which can help you avoid filing those small claims.
Combine your homeowner's and vehicle insurance policies
Another way to reduce premiums is to combine your insurance policies. Most insurance companies will give a discount when policyholders have more than one type of insurance policy through their company. This type of program is often referred to as insurance bundling. As an additional incentive, by bundling insurance policies, you effectively simplify your bill paying and record keeping. A homeowner's insurance broker can help you navigate the various policies to help you determine which types of policies are best suitable for your specific needs and financial situation.
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