The premiums that insurance companies charge for homeowners insurance policies are based on many factors. While you have little control over some of these factors, there are things you can do to reduce your premium. If you live in New Hampshire, here are some of the simplest ways to lower the homeowner's premiums you pay.
How Can I Lower My Homeowners Insurance Premiums Easily in New Hampshire?
Bundle Homeowners and Car Insurance Policies Together
Of all the discounts that insurance companies offer, the bundling discount is perhaps the easiest and largest discount available. All you usually have to do to take advantage of this discount is to purchase two or more qualifying insurance policies from the same New Hampshire insurer.
Most homeowners also need car insurance. Simply bundling these together could provide a substantial discount on both policies. Other policies that you might be able to bundle include boat insurance, motorcycle insurance, RV insurance and umbrella insurance (among others).
Increase Your Homeowners Insurance Deductible
Increasing your insurance deductible is a simple way to directly lower your homeowner's premium if you’re comfortable taking on a little more risk.
A deductible is an amount you must pay out-of-pocket when filing a claim and your policy will usually only pay on a covered claim after you’ve met the deductible. When you raise your deductible, you agree to pay more yourself in the event of a claim.
Since you agree to assume more risk when you do this, raising the deductible results in savings. That said, you never know when a claim may occur, so you should have the deductible amount readily available if needed and not delay repairs.
Another consideration is that different insurance companies give different credits for deductibles, so ask your insurance agent to run a few quote scenarios for you with various deductible options before making a change.
Avoid Over-Insuring Your New Hampshire Home
As important as insurance is, it’s possible to have more coverage than you need on your homeowner's policy. This can happen as most home insurance policies include an inflation guard, which increases the dwelling coverage upon each renewal. If the inflation guard percentage is higher than the actual rate of inflation, you could find yourself over-insured. It does typically level out over time, but if you have been with the same insurance company for many years, you may want to speak with your insurance agent to double-check if your coverage is accurate.
If you over-insure your home, you’re paying for coverage that you don't need.
To make sure you have the right amount of homeowners coverage -- and not too little nor too much -- talk with an insurance agent who specializes in homeowners insurance. An experienced agent will be able to guide you through a replacement cost estimator that can help you determine what level of protection is right for your house.
Tell Your Insurance Agent About All Security and Safety Systems
Many insurance companies offer discounts to homeowners who have particular security and/or safety systems installed in their home. Your insurer may offer discounts for select burglar alarms, fire alarms, or other safety systems, for example.
Exactly what security and safety discounts are available varies from one insurer to the next, and not all systems qualify for every insurer’s discount program. If your home already has a qualifying system installed, though, you certainly want to take advantage of whatever discount you can get.
To make sure you’re receiving any potential security or safety discount that your home qualifies for, tell your insurance agent about every system that’s installed in your home. Your agent can check to see whether any existing systems will reduce your premium.
Compare Policies with an Independent Insurance Agent
A benefit of working with an independent insurance agency, like HPM Insurance, is that they represent numerous insurance companies, and not just one like Allstate, State Farm, or Liberty Mutual. Like many businesses, insurance companies change their rates depending on profitability and loss and adjust the pricing accordingly. This means that what is a reasonable rate this year may not be in five or more years.
This is not to suggest that you should shop your insurance every year as you will lose credits such as loyalty credits or diminishing deductibles, but it is smart to review your policy with your agent. As agents work with many carriers regularly, they will know what a reasonable premium is and what may need a re-shop.