The right homeowners insurance can save money

Protecting one of your largest investments should be a no-brainer, but we understand everything comes at a cost and insuring your home is no exception. However, many of us don’t know as much about it as we could. If you have a mortgage on your home, insurance is usually required, but you have some control over the cost. If you don’t have a mortgage, insurance is still highly recommended to protect your hard-earned investment.

For example: What are insurance companies looking for when renewing your property insurance? Are there benefits to working with a local company? What can I do around the house, if anything, to lower my rates?  

We recently connected with a couple different insurance agencies to get some inside information on how to do the best thing for your homes and your pocketbooks when it comes to insuring your home.

Maintenance Matters

The experts agree:  Keeping your house well maintained is a huge part of getting insurance, renewing insurance and keeping the rates low.

“Maintenance is a very big concern for insurance companies,” said Jenn Durney, an insurance agent and the operations manager at Durney Insurance in Aberdeen.  “If (people) aren’t taking care of the outside of (their) home, often (the insurance professionals) feel the same is true on the inside, which could lead to large claims.”

“Weathered siding, missing paint or gutters, or too much debris around your home shows lack of maintenance and can lead to water intrusion and damage,” Durney said. Also, “companies are very picky about the age of your roof and some won’t insure your home for replacement cost if the roof is over 20 years old. Water damage from a roof leak happens a lot around our area and it helps to maintain your roof and replace it when necessary.”  

“A lot of carriers are using online, aerial imaging to provide evidence of condition,”  said Hayley Conrad, a licensed insurance agent and an office manager of Strand Insurance, which has several offices, including Tumwater, Long Beach, Centralia and Tumwater, and many clients in Grays Harbor.

In addition to the roof being in good condition – “no missing or curling shingles, no moss buildup, clean gutters, attached properly” – Jenn Durney said other signs that a house is well cared for include windows that are sealed and intact, decks and railings that are stable, paint and siding in good condition. Even a regularly mowed lawn and trees and brush pruned away from the roof make an impression, and is good for your home.  

Tell your agent!

Conrad said that if you make major upgrades to your home, you should “absolutely!” let your insurance company know. “A lot of companies will offer less protection if your roof is past a certain age,” she said. “If you replace your roof, it’s important to advise your carrier so they can remove any restrictions.”

Durney concurred. “Yes! Let your agent know if your roof was replaced, which can lead to better coverage and discounts. (Tell them about) electrical panel updates, water heater replacement, etc., it’s all good news for insurance companies.”

She also noted that much of the housing stock on the Harbor is more than 100 years old, and “in some cases there may be an  exclusion based on your electrical configuration (knob and tube). Getting these updated will not only help with your insurance rates and coverage, but also make your home safer for yourself and your family, which is most important.”

Keeping your rates down   

If you’d like to decrease the cost of homeowners insurance, the easiest thing to do is to increase your deductible, as long as you are comfortable covering that amount out of pocket in the event of a claim, Durney said.

Other advice includes looking at the various options, such as bundling policies with, for instance, your car insurance. Look at the options carefully; sometimes this can save your money, but sometimes it can increase your costs. Either way, it’s free to look into.

“Improve home safety through discounts including monitored alarms, smart leak detectors, deadbolt locks, fire alarms that connect to the fire department, etc., “ Durney said, adding that a burglar alarm often help a homeowner get a discount of 5 to 10 percent.

Good living 

Even if the house is well maintained, if other areas of a homeowner’s life are a bit unorderly, it can cost when it comes time to determine rates. Specifically, a poor credit score is linked to more claims so insurance companies note that while determining policy costs.

“Maintain good credit by avoiding late payments,” Durney said. “Also, avoid small claims, which can increase your premiums for up to five years. Pay out of pocket for small claims and use insurance for very large losses, “ she advised. “And shop every few years as insurance pricing shifts constantly.”

Local agent or Internet?

While the online prices of insurance can be tempting, Conrad said that the expertise of a local agent can make a difference.

 “A local agent will offer an account that will be catered to you and your needs based on a more in-depth review,” she said. “Also, a local agent offers the opportunity to build a relationship with the person handling your insurance matters.”    

Communication is key

As with any relationship, we can’t stress communication enough.  Talk to your agent annually to make sure your coverage is correct and if there are any changes or improvements they should know about.  Also, ask if there is anything you should consider to help you save money.

Shopping for insurance takes a bit of time and effort, but it could be worth your while in the long run. Finally, maintain a good credit score by paying not only your insurance premiums on time, but the rest of your bills as well.

 Homeowner’s insurance covers much more than the physical house.  It can cover all your belongings (contents), provide liability coverage for people visiting your property and can even provide things like Identity Theft coverage.  Make sure your agent goes through your entire policy so you understand the coverage you are paying for. 

Eric Bjella is the executive director of NeighborWorks of Grays Harbor; a nonprofit organization committed to creating safe and affordable housing opportunities for all residents of Grays Harbor County. For questions about home repair, housing counseling, homebuyer education and financing, call 360-533-7828, listen to the extension picks that will best help you and leave a callback name and number.