How to Save Money on Homeowners Insurance in Houston
Saving money on homeowners insurance in Houston is a top goal for many residents, and there is good reason for this. Texas has the third highest average homeowners insurance rate in the country, and Houston area residents pay significantly higher than the state average. In fact, Houston residents may pay close to double what residents in Austin, San Antonio and other similar communities pay. While Houston area residents may love the culture of the city, the proximity to the Gulf Coast and the warm climate, many are struggling to find ways to lower their expense for homeowners insurance in Houston. If you are shopping for new coverage or if you are updating existing coverage, now is a great time to apply some of these helpful tips to your shopping experience. You may be surprised at how much money these important tips can save you as you shop or your new coverage for homeowners insurance in Houston.
Understand Your Coverage Needs
Most people who are looking for new homeowners insurance in Houston want to find coverage to comply with a lender’s insurance requirement. Of course, with all of the benefits associated with coverage, you will want to purchase a policy even if you do not have a requirement for homeowners insurance in Texas. This is because coverage can prevent you from paying a small fortune to repair your home if it is damaged in a fire, flood or other significant event. However, coverage for homeowners insurance in Houston will only pay to replace the existing home. It will not pay to replace the existing home with a larger or higher quality home. More than that, it cannot replace the land. Many homeowners want to insurance a home for the full sales price of the property, but this is not necessary. The land cannot be destroyed or stolen, so it generally does not need to be insured. Therefore, your coverage amount should include the cost to replace the home itself rather than the home and the land. This will help you to save a considerable amount of money on your homeowners insurance in Houston.
Use a Broker to Shop Around
Another option that may help you to save money on homeowners insurance in Houston is to use a broker to shop around for coverage. When you shop on your own, you may not know which insurance companies have the lowest rates and you may not take the time to shop with all of them. Instead, you may choose a handful of random companies to shop for coverage with, and you may pick the policy with the lowest rates out of those options. A broker, however, will shop around for you, and he or she may shop with more companies. More than that, he or she also has inside knowledge of the industry and is aware of which companies may have the lowest rates for your needs. This means that you will get quotes from the top companies rather than from random companies. Keep in mind that many brokers will not charge a fee for their services, making this a great way to shop for homeowners insurance in Houston.
Look for Discounts
If you want to save money on homeowners insurance in Houston, you may also look for discounts that could apply to your policy. Discounts vary by insurance company, and your broker can help you to find a provider that offers the best discounts for you. Your premium may be lowered if you take advantage of discounts for bundling your homeowners insurance in Houston with your auto or life coverage. It may also be lowered if you have an alarm, if you are a student or senior or if other factors apply.
Raise Your Deductible
Another smart idea is to raise your deductible, but you should do so with caution. It is common for homeowners to have a one percent deductible. This means that you will pay one percent of the value of the policy each time you file a claim, and this can be a considerable amount of money. You may reasi the policy deductible to two percent or higher, and you will enjoy a lower premium as a result. However, you will have to pay the higher deductible each time you file a claim. This is a good option for those who have a higher balance available in their savings account and who have the financial means available to pay a higher deductible.
Shopping for homeowners insurance in Houston can be stressful, but you can rest assured that you may be able to lower your insurance rate with these steps. You can work with your mortgage broker to further identify your coverage needs, possible discounts that you may apply for and more.