Whether you are new homeowner and find yourself shopping for homeowners insurance for the first time, or a long time policy holder wondering what caused your premiums to spike, relax. While homeowners insurance premiums are influenced by a variety of complex factors, there are a few simple steps your can take to keep your premiums low.
1. Keep an eye on your credit score. Just like financial institutions may consider your credit score when deciding whether to loan you money, your homeowners insurance company can peek at your score to determine what kind of risk they will be taking when writing your policy. Insurance companies can infer much about the kind of person you are by looking at the way you use or abuse credit. Risky financial behavior may result in you being charged more for your coverage.
2. Increase your deductible. Assuming you never have to make a claim, increasing your deductible may lower your premium. This strategy may backfire if you should have to make one or more claims in a short period of time. We recommend that our clients keep cash on hand to cover the amount of their deductible in case it is suddenly required. For example, if you have a $1,000 deductible, set that amount aside in a savings account. Sure, that seems like a large amount to keep tucked away, but it would be better to have it and not need it, than to need it and not have it.
3. Shop for coverage yearly. Because so many factors beyond your control can affect your premiums, it may be in your best interest to annually re-examine your policy, and shop around for the right coverage that will work for your unique situation. Our goal is to connect you with a policy that gives you the best coverage, at a reasonable price.
If you are concerned with the cost of your homeowners insurance, contact us. As a homeowner in Florida, some of the factors that affect the cost of your policy are unavoidable, such as the hurricane risk. Having an insurance broker on your side can help you avoid paying over-inflated premiums from unexpected rate hikes.
Robert Macoviak is the President of Oyer, Macoviak and Associates. Oyer, Macoviak and Associates is the oldest independent insurance agency in Boynton Beach and has been in business since 1953. Oyer, Macoviak and Associates are vested members of the community who are committed to doing business face-to-face and being your insurance advocate in times of need.