Various factors play a role in whether or not a person will get cheap building insurance. There are a multitude of companies to choose from, each of which has their own rates and coverage. Below are proven ways to attain affordable building insurance rates.
Shop Around
Yellow Pages, acquaintances, friends and family members are good reference points of contact for knowing more about prevalent rates. It is also recommended to contact the state insurance department to find out about the usual building insurance rates. Other useful sources of information are consumer guides, online rate quote services, insurance agents and companies. The price should not be the only guiding factor because quality of service also plays a vital role in the selection of a policy.
Raise the Deductible
Deductibles refer to the amount of cash needed to pay for a loss prior to the insurance company paying off the claim. The greater the deductible, the better are the chances of getting cheap building insurance and large savings on the premium amount. Minimum deductibles are around $500 but if this can be raised to around $1000, it is possible to enjoy a saving of almost 25%.
Same Insurer - Auto and Building Insurance
If a person already has auto insurance with a company, getting building insurance from them will prove cheaper. Being long-term clients, the company would be more willing to offer cheap building insurance to them. One can expect reductions of as much as 5-15% in the premium amount when using the same company.
Disaster-Proofing the Building
Taking certain steps such as adding roof reinforcement, storm shutters or investing in stronger roof materials can keep disasters at bay. This will help reduce the building insurance rates as well since high-risk buildings are more prone to high rates. Modernizing the electrical, heating and plumbing systems will reduce risk of water and fire damage and in so doing, lower the rate further.
Don't Add Risk Value
Do not add the value associated with damages from windstorms, fire or theft as part of the building insurance. This just raises premium amounts. Instead know the actual value of the property by consulting with a real estate broker.
Improve Security
Having security systems in place like dead-bolt type locks, burglar alarms or smoke detectors can reduce the insurance rate by as much as 5%. This is an excellent way to get access to cheap building insurance.
Group Coverage
If one's company is offering group insurance programs, it is possible to find out if they offer a building insurance policy and if this provides a better deal compared to other programs. Many business groups and professional companies offer insurance packages in conjunction with insurance companies to provide discounts to members. This is another way to get discounted building insurance.
Policy Limits
Ideally, the building insurance policy should cover all major additions or purchases made to your home. However, many would not want to pay towards unnecessary coverage. It is vital to assess limits within your policy and raise or reduce them as needed for particular items. The value of electronics in the home should also be assessed because some companies offer riders that reduce premium amounts and help to get cheap building insurance.
It is important when selecting cheap building insurance to not choose the very first provider that is reviewed. It is vital to take sufficient time to analyze the different plans and decide which one suits personal requirements the best.
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