Texas Homeowners Insurance Tips

How to Cut Costs & Protect Your Investment

The price you pay for your homeowners insurance can vary by hundreds of dollars, depending on the size of your house and the insurance company you buy your policy from, as well as the type of policy you choose. Policy type and coverage vary widely, so make sure you know what you are buying.

11 Ways to Cut Costs on Your Homeowners Insurance

1. Shop around! Prices may vary from insurance company to insurance company.

2. Policy types are different as well, don’t confuse price with coverage, get the best value in coverage for your premium, ask about what’s in the policy.

3. Select an agent or company representative who takes the time to answer your questions.

4. Raise your deductible; consider a deductible of at least 1 percent of your dwelling’s value and you may save as much as an additional 25 percent on your premium.

5. Buy your home and auto coverage from the same insurer; you may get a companion policy discount and save as much as 5 to 15 percent per policy.

6. Don’t confuse what you paid for your house with current rebuilding costs; insurance companies rate the value of your home based on current construction costs.

7. Be sure you have replacement cost coverage for your dwelling at today’s value.

8. Ask about monitored alarm systems; you may get another 4 to 5 percent discount.

9. Stay with the same insurer; you may be rewarded for being a long-term policyholder; discounts can range from 5 to 10 percent.

10. Review policy limits, and the value of your belongings annually; remember things change and you need to review those changes with your agent it could make a difference in your premium.

11. Make sure your policy type offers replacement cost for your belongings and floaters, riders, and/or endorsements for those important large purchases.

Additional Discounts to Consider

**When you comparison shop, inquire about discounts for:

1. New home discount.

2. Ask about higher deductibles.

3. Companion-policy and multi-policy discounts such as home, auto and life policy discounts.

4. Home security devices and home improvement discounts.

5. Claims Free discounts.

6. Discounts on older homes for modernizing plumbing, electrical, and HVAC systems.

7. 55 years of age and retired discounts.

**(Discounts listed above may not be available in all cases or from all insurance companies)

Remember: Price isn’t everything. Getting proper coverage is always: more important than getting a discount.

Flood & Earthquake Discounts

What You Need to Know

Flood and earthquake damage are not covered by a standard homeowners policy. If you buy a house in a flood-prone area, you’ll have to pay for a flood insurance policy that costs an average of $400 a year. The National Flood Insurance Program provides useful information on flood insurance on its Web site at http://www.floodsmart.gov. An earthquake policy requires a separate review.

Need more information regarding homeowners insurance in Texas? Contact us!

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