JACKSONVILLE, Fla. – As we get closer to the dreaded hurricane season -- all while you’re dealing with rising premiums that feel completely out of your control -- News4JAX turned to the experts to get some tricks and tips to really help you drop your homeowners insurance rate.
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Shop around
Consider a local independent agent or broker who sells policies from several insurance companies. They might also recommend policy add-ons to help your coverage keep up with inflation, which is important if you have to file a claim.
So far this year, at least eight new insurance companies have entered the Florida market, so contact your insurance agent and continue to see what is available.
Look at bundling options
The News4JAX I-TEAM has been turning to experts for months -- looking for ways to help you save on home insurance -- as many Florida residents continue to either scramble to find coverage or struggle with their skyrocketing premiums. Local insurance agents and Consumer Reports give the same advice: bundle your coverage if you can.
“Purchasing your homeowners and auto coverage from the same company can provide savings of up to 30 percent overall,” said Tobie Stanger with Consumer Reports.
Bundling options may be available for homeowners who have the following large carriers:
- State Farm Insurance
- Nationwide
- AAA
- Liberty Mutual
- USAA
- Allstate
- Travelers
According to data from researchers at Insurance.com, which compares rates from top companies, Travelers and Nationwide offer the cheapest car and home bundles, followed by State Farm and Allstate.
The I-TEAM spoke with Brightway Insurance Agent Matt Carlucci Jr., who has more than 20 years of experience in the insurance industry. He says bundling may not be a one-size-fits-all all for Florida homeowners.
“Just because you can bundle doesn’t mean that, that’s going to be a better option for you than going to an independent agent who may place your home with one company, your auto with another. That being said, if you’re already insured with one of those big-name carriers, it is absolutely worth a phone call to see if they can bundle your other line of insurance with them,” he explained.
Raise your deductible
You can also save if you raise your deductible. Higher deductibles mean lower premiums. Consumer Reports says, for example, going to a $1,000 deductible from $500 might shave your premium by 25%.
Lower your contents coverage
After raising your deductible, Carlucci says there’s something to lower to save money: contents coverage.
“Most claims are typically only for damage to the home itself, not the contents inside -- at least in my experience,” he said. “So, if you’re going to look to save money, I’d rather see people look at restricting the coverage on their contents inside of the home, not changing coverage on the home itself.”
Get a wind mitigation report
Carlucci says a wind mitigation report can also help lower the amount you pay in home insurance. This report shows how your home will hold up in a windstorm -- like your windows, doors, and roof.
Replace what’s old
“The age of your roof matters,” said Stranger. “Some insurers add a surcharge of up to 15% for older roofs. You’re better off getting ahead of the storm and replacing it.”
The same goes for older plumbing. Replace it.
New fire stations could mean lower premiums
If a new fire station has opened near your neighborhood, let your insurer know. Faster response time could mean you get a lower insurance rate.
Add devices
Another way to save is to invest a little bit of money on devices that add protection to your home. For example, consider a home security system as well as gas and water leak detectors.
Clean up your credit
Like it or not, most insurers can use what’s called a credit-based insurance score. They can check your score often and use it in pricing premiums. The National Foundation for Credit Counseling can help you find solutions to improve your credit score.
Know what’s considered risky
Consumer Reports says you need to know that some of the things you love around the home may be considered a risk to insurers.
- For pets, some insurers say the risk of dog bites and liability lawsuits is greater with certain breeds. You might be denied or have to pay more.
- Trampolines and pools are safety risks.
- If you’re a smoker, that could be considered a fire risk.
Consumer Reports reminds you to always report the truth. Not divulging honest information could lead to dropped coverage if your insurer learns about it later after an accident.