You received your Homeowners insurance renewal and you are not sure if you are still getting the most competitive rate in our area.
Before you start calling around town,
take some time to determine what you really need.
Here are Three Steps before you get started.
1) Determine how much insurance you need
A rule of thumb is take the square feet of your house and multiply it by 100.
This will help you determine the Replacement Cost of your house.
ex) 2750 sq ft house X $100 = $275,000 estimated replacement cost.
This is not the exact formula that will determine the true replacement cost but it will help you get an idea.
The Replacement Cost of your house is the amount it will cost you to completely rebuild your house after a claim so a good residential home builder would be a great person to talk to if you want to know the current cost per square foot based on current cost of building materials.
2) Determine your deductible amount
Deductibles can be as low as $500, but homeowners insurance is not a maintenance or warranty policy so if you want to continue to keep your home insurance rates low, don’t make small claims.
You should consider a higher deductible at least to $2500.
The deductible is the amount the insurance company will deduct from your claim check
so if you can’t afford to have $2500 deducted from a claim check,
try a lower deductible.
But remember the higher deductible you choose, the lower premium you will pay.
3) Determine the value of your contents in your house (personal property)
This is the amount of your personal property you purchased and brought into the house when you moved in.
Hint: Not all of your personal property is automatically covered under a homeowners policy.
Every homeowners policy has a sublimit or max payout on certain personal property items.
To understand what is limited in coverage, click here.
What about discounts?
Every homeowners insurance company offers discounts.
Since you purchased your original policy,
you may now be eligible for discounts.
Here is a list of discounts that may be available to you
- Roof (year of roof replacement determines the amount you save)
- Monitored Burglar Alarm
- Monitored Fire Alarm
- Over 55 years old (mature homeowner)
- Hip shape roof
- Flood insurance
- Auto insurance
- Umbrella insurance
- Rental dwelling insurance
What’s this all about?
Talking with an agency that is dedicated to understanding your needs and creating a protection package proposal including all the available discounts is something you should consider.
We would be happy to speak with you about your homeowners insurance.
Call us now at 504.348.3131 or complete a homeowners quote request form to get started.