Whether you have a mortgage or own your home outright, you need real estate insurance in Los Angeles to help cover costs in the event your home is damaged due to vandalism, severe weather or some other incident. However, the costs of homeowners insurance can quickly add up — according to SFGate, the average homeowner pays $1,083 in premiums each year. Fortunately, there are several ways you can lower your homeowners insurance premiums. Keep the following tips in mind:
- Compare quotes from multiple insurance companies. The Insurance Information Institute recommends shopping around for the best deal. In California, the best place to start is the California Department of Insurance, which provides information about how to select the right coverage. You can also use consumer guides and online comparison tools; and of course, you can request quotes and compare them yourself. Keep in mind, however, that the lowest price might not offer the best value, so always check exactly what coverage and service you’re getting.
- Purchase your car and homeowners insurance from the same insurer. CNBC reports that bundling policies can save you as much as 16 percent per year. For the average homeowner, this amounts to an annual savings of $322.
- Increase your deductible. When you file a claim, you first have to pay a predetermined amount of money — your deductible, which is usually at least $500 — before the insurance pays out. Since your premium amounts are directly correlated to the height of your deductible, the higher your deductible, the lower your premiums will be. Note that if you live in an area that’s prone to hurricanes, earthquakes or storms, you might have a separate deductible for that kind of coverage.
- Ask for credits and discounts. Oftentimes, if you’ve been with an insurance company for a number of years, you qualify for discounts. However, as U.S. News points out, these credits might not be applied automatically. The best course of action is to contact your insurance company to find out if you qualify for any credits and if so, what you need to do to have them applied to your policy.
- Upgrade your home. According to NBC News, the following upgrades can help you save on your premiums: A home security system can save you around 10 percent, water shutoff devices can save your three percent, storm-safe windows with roll-down shutters and impact-resistant glass can save you between 10 and 15 percent, and an upgraded roof can reduce your premiums by as much as 35 percent. While upgrades like this require a certain investment that might take some time to recoup, they’re worth it because they also protect you and your property.
- Maintain good credit. Insurers may review your credit history and credit score to determine your insurance rates. To maintain good credit, pay all your bills on time, avoid bills going into collection, keep your balances as low as possible and don’t apply for more credit than you need. In addition, check your credit report once or twice a year and address any inaccuracies — such as falsely reported collections — so your credit score is protected.
Lowering your homeowners insurance premiums requires some time and effort. However, the long run, it can save you hundreds of dollars a year — and that’s money you can put back into your home to enhance your living environment and increase the value of your property.
Real Estate Insurance in Los Angeles
For more information about lowering your home insurance premiums or to request a quote, please contact Grand Mutual Insurance today. We have licensed insurance agents who can help you find the best package for real estate insurance in Los Angeles. Call 888.732.5994 or email Sharon Ezra at [email protected]
