How to Maintain Affordable Home Insurance
Many people work hard to secure affordable homeowners insurance. However, don't rest on your laurels once you get affordable coverage. A rate increase is possible if you are not careful. Below are some helpful and practical measures to avoid a potential rate increase.
Minimize Your Claims
Your insurance history affects your future rates. Insurance companies will evaluate your coverage and claims history to determine your risk exposure to them. Numerous claims within a short period might increase your rates. The interpretation is often that:
- Something might be wrong with your house if it keeps suffering damage
- You might not be as careful as you need to be with your house
- You lack the resources to maintain your house
Evaluate your claims and only submit the significant ones. Take care of small damages on your own to minimize your overall claims. For example, don’t file claims that are only a few dollars more than your deductible.
Be Careful With Renovations, Remodeling, or Additions
Your house's value affects your coverage rates. The value determines how much the insurance carrier might spend to rebuild your house in case of damage. Thus, anything that increases your house's value might increase your rates. Renovations, remodeling, or additions commonly increase property values, so avoid them if you don't want to pay more for your coverage.
Note that only significant changes to your house count. For example, adding a swimming pool, finishing the basement, or installing a state-of-the-art kitchen can add thousands of dollars to your property's value. A minor change, such as a new coat of paint, doesn't matter.
Maintain the Home
While you should be careful with significant changes to the house, you shouldn't let it fall into disrepair either. Good maintenance practices will:
- Reduce the risk of injuries
- Reduce the risk of damage
- Reduce the risk of theft
For example:
- A broken window increases the risk of burglary
- A leaking roof increases the risk of water damage
- Broken tiles increase the risk of slip and fall accidents
All these risks can trigger insurance claims, which can raise your rates. Maintaining your home will maintain the rates too.
Have a Good Credit Rating
Some insurance companies use your credit rating when determining your risk exposure to them. Your credit score shows how responsible you are with your finances. Your financial responsibility shows how likely you are to file a claim in case of small damage.
You probably had a good credit rating when you got your affordable insurance rates. Maintain or raise the rating if you don't want your coverage rates to increase.
Don't Switch Providers
Many insurance companies reward their loyal customers after years of coverage. A rate discount is a common reward. You are even more likely to enjoy the reward if you have a no-claims history with the same carrier. In such a case, you might lose the discount if you change carriers, which might increase your rates.
Don't Unbundle Your Coverage
If you bought multiple lines of insurance from the same carrier, then your low rates are probably due to the multi-policy discount the carrier extended to you. Many insurance carriers give their clients bundle coverage as a retention strategy.
For example, you may enjoy the discount if your car, life, and home insurance are all from the same provider. In such a case, moving a policy from your usual carrier to another might see you lose the multi-policy discount.
Accredited Insurance Group Incorporated can help you buy affordable homeowners insurance. We will also advise you on how to maintain those rates. Contact us for a quote on homeowners insurance or other lines of insurance you need.
CONTACT INFORMATION
Phone: (402) 334-1780
Email: kimr@accreditedinsurance.net
Address: 11420 Davenport St
Omaha, Nebraska 68154-2527
BUSINESS HOURS
Monday - Friday: 9 AM - 5 PM
Open First & Third Saturdays of Every Month from 9 AM to 12 PM.
*Closed Holidays
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