San Antonio Homeowners Insurance
Anyone who owns a home knows that there are lots of costs involved. So imagine if damage happened to your home outside of your control – do you have extra cash set aside to pay for these damages? Most people don’t, which is why homeowners insurance is so important. In this guide we shall look at the costs involved in getting homeowners insurance for your home.
Factors Affecting Homeowner Insurance Costs
There are many factors that will affect your homeowner insurance costs. The average cost for home insurance in the USA is just under $800 per year.
The main factor is the value of your home and its contents. If your home is high in value then you will pay higher costs than those with a home at a lower value. The condition of your home can also affect your insurance premiums. Is the plumbing and electricity in good condition? If not, you may be paying more for insurance. New homes are also generally cheaper for insurance than old homes that are more susceptible to damage.
The cost of your insurance will also be affected by what level of coverage you require and what extras you need. Some people may choose the basic cover for their home whereas others will choose a comprehensive insurance that covers them in all situations which inevitably will be much more expensive than the basic cover.
Do you live in an area prone to hurricanes or bushfires? Is the crime rate high in your area? These factors will also affect the cost of your homeowner insurance. Essentially insurance costs are calculated by assessing the risk that your home is at and what chance there is that you will need to make a claim. The higher the chance that a claim will be made the higher the cost of your homeowner insurance.
If you have made claims in the past with other insurance companies then this can also affect the cost of your homeowner insurance. They much prefer having people who do not make many claims – for obvious reasons!
How to Minimize your Homeowners Insurance Costs
There are several ways in which you can ensure that you aren’t paying more than you have to for your homeowners insurance.
The best way to minimize your monthly insurance costs is to increase your deductible. Deductibles are the amount of money you have to pay towards any damage or loss before your insurance company begins to pay the claim. The higher your deductible the lower the premiums you have to pay. For example, most insurance companies recommend a minimum deductible of $500 – however if you are able to raise it to $1,000 then you can save up to 25 percent off your insurance costs.
If you already have auto insurance then you may wish to ask your insurance company if they offer homeowners insurance (most large ones do) and if there are discounts if you have two or more policies from them. Many companies will offer between 5 and 15 percent off your premiums. Before doing this though, always check that this will give you a better deal than purchasing from two separate companies.
Many homeowner insurance companies will offer you discounts and lower rates if your house is more disaster resistant. If you add storm shutters, reinforce your roof or are made to be sturdier in earthquakes you may be eligible for lower insurance costs. Making sure you have a burglar alarm, smoke detector and other detection devices can also lower your homeowner insurance costs.
Some homeowner insurance companies will check your credit rating before finalizing the policy. The better your credit rating the lower your insurance costs. If you know that you have a poor credit rating then you may wish to use an insurance company that does not check credit ratings.
How to Get a Homeowner Insurance Quote
It is easy to get a quote for your homeowner insurance. One of the quickest and easiest ways to do so is on the internet. Almost all of the large insurance companies offer instant online quotes so that you don’t need to sit around waiting by the mailbox to receive your quotes.
Always make sure that you compare several insurance companies before settling on one as you may be paying more than you need to.