We’re in the final stages of a home renovation, so I’ve been getting my ducks in a row to refinance. While reviewing my homeowner’s insurance policy online, I noticed a short note State Farm had left for me on my policy page that said something like “we can save you a large amount of money; call us today!” Admittedly I am always skeptical of such offers, but I decided to pick up the phone and call my agent anyway.
Turns out we were paying over $800 extra annually for a $1000 deductible policy (versus the typical 1% deductible policy most homeowners choose). In our case a 1% deductible means we’d be responsible for roughly $4k out of pocket should we have to file a claim. My back-of-the-napkin math showed this to be a no-brainer decision…we will end up saving the $3k difference in under 4 years. And then it’s all gravy after that…($800 buys a lot of gravy!)
My very helpful State Farm rep then made me aware of two other potentially unneeded items we had on our policy that were costing us roughly $250 each per year. These dealt with slow leak water issues (as opposed to sudden pipe bursts, which are covered under the general policy). I called my most trusted advisor (Dad) and decided to drop these from our policy as well.
And just like that, within 30 minutes I had given my family a $1300 annual raise! Thanks, State Farm!!
Here are a few more tips for saving on homeowners insurance:
Shop Around
Get rate quotes from several different companies. This is one of the most effective ways to save big bucks.
Choose One Company…and Stick With Them
Not only do insurance companies give discounts for having both your homeowners and auto coverage with them, but most companies also offer further discounts if you’ve been with them for 3 years or more.
Insure Your Home, Not the Land
The land your house sits on will likely be just fine despite any catastrophic events that may occur to your home (fire, wind, hail, etc…). Don’t include the value of the land when calculating how much coverage you need to purchase.
