With the cost of most every thing rising these days, finding areas to save money can be really helpful. Your North Dakota homeowners insurance is a great place to start saving because there are many hidden ways to reduce that most people do not know about.
Here are a few money saving tips for your North Dakota homeowners insurance that will hopefully help you strengthen your financial position.
Raise Your Deductible to Save on Premiums
One way to save money on your North Dakota homeowners insurance premiums is to consider raising your deductible. There is a trade off between lower premiums and higher out-of-pocket expense. This doesn’t come without some risk, though if you don’t raise the deductible out of your comfort range, it can pay off.
Though this is a generalized chart, it will give you an idea of the savings you can receive by raising your deductible.
- From $250 to $500: Save 10 to 12 percent
- From $250 to $1,000: Save 20 to 24 percent
- From $250 to $2,500: Save 28 to 32 percent
- From $250 to $5,000: Save 35 to 38 percent
As you can see there is a great deal to be saved on your premiums by raising your deductible, though you should proceed with caution. With a $5,000 deductible you could be paying lots of money out of pocket. A deductible of $1,000 is generally the point at which you maximize your savings without putting yourself at too much risk.
Stay Loyal to Your Insurance Company
If you are getting reliable service and the rates are competitive with other homeowners insurance companies, you should stay with that company. There are many insurance companies that reward customer loyalty. If you stay with a provider for 3 years or more, you may see a discount of 5 percent on your premiums. In some cases, there is a sliding scale in which you can earn bigger discounts as you reach different milestones, such as 5 years and 10 years which can add up to considerable savings.
Go with Replacement Cost Coverage
Replacement cost coverage means that if a covered event destroys some of your personal property, you will get the amount needed to buy that item. Actual cash value coverage means you would get what the item was worth at the time it was damaged, which will result in a much lower payout on the claim.
Going with replacement cost coverage will add a little to your premiums, but could save you lots of money in the long run if you have to begin replacing damaged items. Getting paid $50 for an old oven with actual cash value coverage is not going to help you much when you have to purchase a new one that costs $300 or more. Multiply that by other items in the home, such as televisions, beds, washer, dryer and your out-of-pocket expense could be quite significant to restore your home.
Look into Group Insurance
If you are a member of a professional organization or a local alumni chapter, you should consider looking into group homeowners insurance. North Dakota homeowners insurance companies will often work with larger groups and offer discounts to get the business. By sharing the risk throughout the group, the insurance provider can offer greater discounts to the group as a whole.
If the organizations that you belong to are not affiliated with a homeowners insurance company, you may want to take matters into your own hands and try to set up a group affiliation. It could lead to a great deal of savings for you and your colleagues.
Get Rate Quotes to Save Money
Companies vary greatly in how much they will charge a specific customer for insurance. There are many variables involved in calculating your rate and thus much variance. In order to find the cheapest rate for you, you will need to shop around. You need to find the insurance company that offers specific discounts that you can take advantage of, as well as considers you a lower risk than others companies may.
When it comes to convenience and saving time, there is no better way to shop than by taking 20 to 30 minutes to get many different quotes. You will be amazed at how much one company will differ from another in what they charge. By getting these rate quotes, you can save hundreds of dollars per year on North Dakota homeowners insurance.