Home insurance can be expensive. Some policies cost hundreds of dollars annually, while others may be free but come with a multitude of restrictions. Either way, it’s important to have a firm grasp of the different factors that can impact your premium. Negotiating your home insurance rates isn’t always easy, but it’s also not impossible if you know what you’re doing and are willing to put in the necessary time. After all, knowing your limitations is half the battle when it comes to getting a lower premium from your carrier. This article outlines seven helpful tips for negotiating home insurance premiums effectively so that you get the best deal possible without compromising your coverage levels or security standards.
Know What Influences Home Insurance Rates
The first thing you should do when trying to get a lower home insurance rate is to understand what factors determine your premium. You’ll want to know if there are any specific risks your home may be exposed to or any exclusions or reductions in liability that your carrier has to factor into your rate. You’ll also want to know what factors impact other entities in the industry, including your primary competitor and your state’s general average. These are all things you can research using a home insurance rate comparison tool like InsWeb.
Educate Your Carrier About Why You’re Seeking a Lower Rate
If you want to get the best deal on your home insurance rate, the first thing you should do is reach out to your carrier and have a frank discussion about what you’re trying to accomplish. Do not be shy about explaining why you’d like to get a lower rate and why you feel your coverage is below average. Your carrier may be willing to work with you on lowering your rate if you give them an honest reason to lower your premium. For example, you may be able to negotiate a lower rate if you ask your carrier to increase your coverage or add a rider. You may also want to consider reducing the number of dwelling structures on your policy. For example, if you live in a single-family house that you’re only insuring, you may be able to get your home insurance rate reduced.
Don’t Be Afraid to Ask for a Discount
However you choose to go about getting a lower home insurance rate, don’t be afraid to ask for a discount. While some carriers may be reluctant to work with you, providing a discount does not automatically mean your policy will be cancelled. Carriers have ways to lower your rates, and discounts are just one of them. If you’re not comfortable asking for a reduced premium, it’s also perfectly fine to just accept the rate your carrier is giving you and not bother with negotiations. You do want to make sure to do some research so that you don’t get stuck with a policy that’s too expensive.
Set Priorities When Negotiating Premiums
There are certain factors that are virtually guaranteed to influence your home insurance rates, such as where you live, the make and model of your car, and your age. On the other end of the spectrum, there are also factors that are almost impossible to impact, such as your driving record, the quality of your materials, or the design of your home. If you want to get the best deal on your home insurance rate, you need to place a high priority on the factors that are most likely to impact your rate. In other words, you need to make sure your top priorities are at the top of your list when negotiating home insurance rates. A good place to start is by researching your home insurance rates and finding out where you can get a cheaper policy.
Take Advantage of Any In-Network Benefits You Have
If you have any in-network benefits, it’s worth pointing them out to your agent when negotiating home insurance rates. Some carriers may offer discounts or waive out-of-network benefits if you choose to enroll in an in-network plan. If you have prescription coverage through your medical plan, you may also want to point this out. Depending on the plan you’re trying to get a cheaper rate on, you may be able to negotiate a lower home insurance rate by adding prescription coverage.
Ask For More Protection Options When Negotiating
Depending on your age and the extent of the damage that can be done to your home, you may want to ask your agent to add additional coverage options when negotiating home insurance rates. For example, if you live in an area with an above-average risk of fire, you might want to ask your agent to add coverage for structural damage. Similarly, if you live in a high-risk flood zone, you may want to ask for flood insurance coverage.
Home insurance can be expensive, and it can be difficult to get a lower rate. Fortunately, there are a few tips and tricks that can help you get a lower rate. If you are interested in lowering your home insurance rate, make sure to follow these tips to get the best deal possible.