Negotiating A Discount Home Insurance Rate

With a little bit of work and some savvy comparison shopping, it is possible to find discount home insurance policies. There is no magic, no secret hiding place on the web, and it is definitely not some guy selling “Hey, Joe” policies out of his trunk that are without value and merit (“Hey, Joe” policies are so-named because of the phrase “Hey Joe, can I interest you in an insurance policy?”). Finding discount policies is a legitimate option for consumers.

Where can discount home insurance policies be found?

Discount home insurance policies can be found on-line through e-insurance companies, or from any insurance company, and their agents, that sells home insurance. You do not need a degree in haggling. All you need is a desire to get a good rate.

How can I find a good rate?

The simplest way to find a good rate, is to shop around. Insurance is a competitive market, and agents will fall over themselves for your business if they know you are in the market. Negotiating a great rate requires that you know how much coverage you need, the age of your home, its structural details, its square footage, its location, and have an idea of what you expect your deductible to be. The age, size, structural details, and location of your home are not really things that can be controlled an work to the insurers advantage. On your side, you can control the amount of coverage you need and the amount of the deductible.

How can I use these to negotiate discount home insurance premiums?

The insuring agency will have an offer based on the factors out of your control. They can offer a policy that pays a claim according to actual cash value (ACV) or replacement value (RV). ACV policies have lower premiums than RV policies. With that information, you can begin lowering the expected premium by lowering the amount of coverage you need (it costs less to insure less) and by raising the deductible (the more you pay before the insurance company has to cough up lowers the monthly premium as well).

Are there other ways to get discounts?

Insurance companies offer discounts on home and other policies if you have multiple policies with them. By doing all your insurance business with one company (home, health, automobile, life) discounts will be offered that provide substantially lower your premiums on all the policies than if you had them scattered among different vendors.

You do not have to accept the first offer on a homeowner’s insurance policy. With a little bit of effort and a willingness to negotiate, you can find a discount home insurance policy with a rate that will have you smiling.