Page 26 - Kiplinger's Personal Finance - November 2018

MONEY

FAMILY FINANCES

Trim Your Home

Insurance Premium

Whether you stay with your current insurer or switch, you can lower your rate without
sacrificing coverage. BY MIRIAM CROSS

CAR INSURANCE COMPANIES ARE FALLING switch, says Spencer Houldin, presi- owners policy is one way to save money.
all over themselves to grab your atten- dent of Ericson Insurance Advisors, But a better deal on the surface may
tion with clever TV ads, giving the im- in Washington Depot, Conn. come at the cost of important cover-
pression that lowering your premium File multiple claims and you risk ages or useful perks. Before making
is as easy as picking up the phone. But having your current insurer drop you the jump, explore other ways to lower
when it comes to homeowners insur- when your policy comes up for renewal. your rate with your current insurer.
ance? Crickets. In that case, you’ll have to find cover-
Yes, it’s pretty quiet on the home age through a more expensive “surplus SAVE WITHOUT SWITCHING
insurance front. For years, insurance lines carrier,” such as Lloyd’s of Lon- If you’re happy with your current in-
companies have played a game of don, which specializes in higher risks surer, there are ways to trim your
chicken with policyholders who dare that standard insurers won’t touch. premium without switching to a new
to use their insurance. They’ve threat- A slew of factors can affect your company. Start by choosing a deduct-
ened to raise premiums—or refuse to rate, many of which are out of your ible of at least $1,000, or a higher one
renew your policy—when you make control. In the past, insurers consid- if you can afford it. Raising your de-
too many claims. Just one claim can ered building construction, protective ductible from $500 to $1,000 often
raise your premium if it’s the “wrong” features and claims history, among cuts your premium by up to 15%.
kind—say, for plumbing leaks. Even other factors, to set your premium, Ask your agent or insurer if you are
many homeowners with no claims says Bill Wilson, CEO of Insurance getting every discount you are eligible
on their record are too intimidated Commentary.com, an insurance- for. For example, some insurance com-
to shop for a new carrier. information website. They still con- panies will reward you for retiring,
Homeowners insurance rates typi- sider those, but increasingly, “insurers living smoke-free, installing storm
cally rise a bit each year to keep up are relying on big data, meaning there shutters or an impact-resistant roof,
with inflation. When you file a claim— can be potentially hundreds of rating renovating your plumbing or electrical
especially for an event unrelated to factors,” he says. For example, your system, residing in a gated community,
a widespread catastrophe, such as a “insurance score” could blend your or holding a college degree. One of the
hurricane or wildfire—you can expect credit score with your claims history, most worthwhile credits you can get
your rate to go up even more for several your home’s construction, its safety is for installing a central alarm system;
years. Having one claim unrelated to features and other considerations. the money you save on premiums often
a widespread catastrophe within the Or a natural disaster that stretches pays for the monthly monitoring costs,
past three years on your record can an insurer’s resources in one state says Wilson. Some companies reward
knock you out of the running for many can have an impact on the premiums loyalty or the length of time you remain
insurers; two claims in that time of policyholders in unaffected states. claims-free.
frame make it nearly impossible to Shopping around for a new home- Bundling your auto and home policies

44 KIPLINGER’S PERSONAL FINANCE 11/2018 ILLUSTRATION BY MAI LY DEGNAN

K11M-HOME INSURANCE.1.indd 44 9/21/18 3:09 PM