When looking for ways to save money, the first thing many people think of is their insurance. They see an ad for a property insurance premium discount and decide to take it without reading the small print. What they may not know is that this could end up costing them thousands of dollars if a loss happens.
Our public adjusters explain what taking a property insurance premium discount means, and why you may be throwing out your rights in exchange for a negligible discount on your insurance.
Key Takeaways:
Insurance companies are constantly changing their policies
Insurance companies offer discounts for you to waive your rights
There are better ways to save on insurance costs
Let’s get started!
What is In Your Insurance Policy Agreement?
Do you know what is in your property insurance policy agreement? Most people don't even think to read it, assuming that their coverage will be the same as it was last year. However, Insurance companies are constantly changing the language in their policies to limit their liability.
One of the most common ways they do this is by offering a premium discount for policyholders who agree to waive their rights to certain types of coverage.
The Truth Behind the Discount
For example, let's say you have a $250,000 home and your insurance company offers you a 20% discount on your premium if you agree to waive your right to replacement cost coverage. This 20% seems nice, and many property owners will take it. But what doesn't seem so obvious, is this means that if your home is destroyed in a fire, the insurance company will only pay you $200,000, even though it would cost $250,000 to replace your home.
In exchange for a discount, you are basically giving up your right to full coverage.
If you have any questions, give us a call at Liberty Insurance Adjusters! We would be happy to help you understand your policy and make sure that you have the coverage that you need.
Saving Money on Your Homeowners Insurance
So, is an insurance premium discount worth it? Typically, no.
But this is a decision that you will have to make for yourself. We encourage you to read your policy (entirely – not just the abbreviated or ‘dec’ page) agreement carefully before making any decisions. Insurance companies are not always transparent about what you are agreeing to, and it is important to understand the implications of any changes to your coverage.
If you are looking for safer ways to save on your insurance cost, here’s what you can try:
Shop Around
One way to make sure you are getting the best deal on your homeowner's insurance is to simply shop around for a new company. Insurance rates vary drastically from company to company, so it is important to compare rates before you settle on a policy.
Another important thing to keep in mind is that insurance companies frequently change their rates, so it is important to re-shop your policy every few years to make sure you are still getting the best deal.
Raise Your Deductible to Offset Your Premium
A higher deductible means you will have to pay more out of pocket if a loss occurs, but it also means a lower premium. Although this is similar to a discount, you may not lose important coverage.
You should always make sure that you can afford the deductible you choose in the event of a loss.
Bundle Home and Auto Insurance
Bundling home and auto insurance can lead to a significant discount on both policies. It is a great way to save money, but you should still make sure that you are getting the best deal possible.
Insurance companies offer this discount because they know that customers who bundle are less likely to shop around. Despite this, you should still compare rates before you decide to bundle your policies.
Make Your Home Disaster Resistant
You may be able to save on premiums by:
Installing storm shutters
Strengthening roofs & performing consistent maintenance
And adding other enhancements that will help keep the damage in check when disaster strikes!
Although some of these methods may cost you upfront, your insurance may lower premiums if the home is more secure. This goes for home security systems too!
Read More > Damage Prevention Tips
Have a Claim? Call Liberty Adjusters First
So, that insurance premium discount might not be as enticing as you once thought! As long as you read your policy, stay educated, and double-check every “discount”, you’ll be sure to have the policy you need.
Don't let an insurance company take advantage of you! Call Liberty Adjusters, and our Florida loss specialists will make sure that you are getting the best possible settlement for your claim. We have experience dealing with all types of claims and we know how to get results. Get the justice your property deserves today – submit a claim!