Insurance is a necessary evil. We buy it, hoping we’ll never need to use it. It’s a hedge against catastrophe.
The process of insuring luxury Southern Maryland homes is far different from insuring other homes. It’s expensive to replace a home with custom finishes, and high-end homes may contain priceless works of art, expensive vehicles, and irreplaceable values.
Did you know that many homeowners insurance policies place a low cap on coverage for jewelry? The specialty high-end coverage that the luxury homeowner in Southern Maryland purchases needs to be broad in scope. It may mean adding special coverage.
Because of this, some homeowners end up with four or five different policies, says Market Watch’s Christopher Noble. Subsequently, owners of homes that are valued at $1 million or more can pay from $5,000 to $50,000 a year for insurance.
There are ways to save money on your homeowners’ insurance coverage. Let’s take a look at five.
Stick with the same insurer
If you own more than one home, make sure that both are covered by the same insurer and ask for all the discounts offered. You can also move your auto insurance to the same company for additional discounts.
Raise your deductible
As you may have learned with health insurance, the deductible you choose has a large impact on the premium you’ll pay. How much? A chart at ValuePenguin.com explains it all. The blue bars on the chart represent the premium amount. As you can see, raising the deductible from $1,000 to $10,000 will save $359. Even a more moderate hike, such as from $1,000 to $4,000, nets a more than $200 savings.
Install security features
If your Southern Maryland home lacks certain safety features, like alarms, fire sprinkler systems, and dead bolt locks, install them. Each safety system typically qualifies for a discount, so speak with your agent to determine which he or she recommends.
For example, check out these discounts available at the Chubb Group of Insurance Cos.: “It discounts premiums by up to 25% for homes with sprinkler and alarm systems,” according to marketwatch.com.
Some insurance companies offer discounts if the home has certain trouble detectors. These might include temperature sensors that detect a problem with the HVAC system or leak detectors with alarms that sound when water touches them.
“Particularly if (the systems) are routed back to a service (such as the local fire or police department), well that’s more expensive, so the discount is higher,” says Loretta Worters of the Insurance Information Institute.
Take advantage of your age
Last year, Palm Beach, with a median resident age of nearly 55 years old, was ranked the third richest city in the U.S., according to Inman.com. Some insurers reward older American homeowners with discounts, so those affluent homeowners in Palm Beach, and other wealthy cities, may be eligible for a break on their homeowner policies.
Additional savings an affluent Southern Maryland homeowner should ask about:
Claim-free: If you’ve gone a long period of time without submitting a claim, you may be eligible for a discount on your premium.
New roof? Call your insurer to find out if the material used in the new roof is disaster-proof. It may save you money.
Retirement: Insurance companies consider retirees’ home’s low-risk. After all, they’re home most of the time (or so the assumption goes), so they’re quicker to respond to a house fire and better able to thwart a home break-in. If you are a member of AARP, check out its insurance program.
Green home coverage: While this discount isn’t common, one or two companies offer discounts on LEED-certified homes.
Do your research
Shop carefully for home insurance. “Some of the companies that have the most discounts start with the highest price,” Bob Hunter, director of insurance for the Consumer Federation of America, tells banrate.com.
The final price you’ll pay should be your priority, not the number of discounts you’ll get.
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