As noted here, Ohio’s
1997 average homeowners insurance premium ranked 50th in comparison to
all states and Washington, DC. Ohio homeowners paid an average of $289
for an HO-3 homeowners insurance policy in 1997, while the national average
was $455. The average 1997 Ohio renters insurance policy was $132, compared
to the US average of $169.
To save on homeowners insurance:
-
Shop around. Contact several insurance companies and agencies to discuss coverage, costs, claims handling and service. Provide identical information including the description of your home; security devices, if applicable; types of coverages and limits you want; and extra coverages you may want such as earthquake or sewer drain backup, an umbrella policy, coverage for collectibles or fine jewelry, or a flood insurance policy. Check the financial ratings of the companies for stability. Ask friends and family for recommendations and surf the net for company information.
-
Protect your home against typical perils. By preventing losses and claims against your policy, you can help to keep the cost of insurance down. These include:
- Keep fire extinguishers in fire-prone areas such as the kitchen, laundry and garage.
- Replace old, faulty wiring and make sure to tell your insurer.
- Regularly check your roof, down spouts and pipes for clogs or leaks.
- Discourage crime by using exterior lights at night and installing deadbolt locks on doors.
- Keep your property safe. Repair loose railings, steps or walkways. -
Ask about available discounts. Some companies provide discounts typically in the 8–15% range for new construction, since newer homes are built to updated building codes and standards. Most companies offer discounts for homes that include a monitored security system, but be sure to ask how much you’d save on insurance prior to installation. If you’ve had your home insured with the same company or agency for several years, you may also be eligible for an additional premium discount. Also, ask your insurer for tips to help reduce your risks.
-
Raise your deductibles. By raising your policy’s deductible, you’re responsible for smaller losses, not your insurer, thus lowering your premium and chances for frequent claims. Raising a deductible from $250 to $500 could lower your annual premium as much as 12%. A $1,000 deductible could mean as much as a 25% savings.
-
Review your policy annually. Correct and/or update the information. Double-check the information regarding how far your home is from a water source such as a fire hydrant, as well as the location of the nearest fire station. If you’ve insured an item separately and it’s depreciated, reduce or eliminate the endorsement that covers it.
-
Buy all insurance products from the same source. Companies or agencies that provide insurance for your home, auto, life and/or health offer multiple policy discounts of 5–15%.
-
Check on group coverage resources. Employers, alumni and business/trade associations often negotiate insurance packages with insurance companies at competitive rates. Contact your human resources manager or association director to see if a package is available.
-
Don’t over-insure. Your land is included in your home’s market value, but don’t include it when deciding how much insurance to buy. If you do, you’ll wind up paying higher premiums.
-
Opt for guaranteed replacement cost. Although it costs more, you’re better off if faced with a major loss. A replacement cost policy pays to replace the damaged property or loss, regardless of the age and condition of the damaged property, with materials of similar kind and quality. An “actual cash value” policy provides reimbursement at the loss’ depreciated value.
-
Contact the Ohio Department of Insurance for a free homeowners insurance guide. It provides all types of information, including average premiums by company. Call 1-800-686-1526 for a copy or download it from www.ohioinsurance.gov.
-
Avoid frivolous claims. Submitting a claim after years of paying premiums is justifiable, but frequent claims may mark you as a high risk. Consider paying for smaller claims and filing for losses that are not affordable.
-
Cover your home office. Don’t assume automatic coverage. Premiums can run as little as an extra $20 and can protect business risks.
-
Don’t smoke. It causes over 23,000 residential fires annually. Some insurers offer premium incentives if none of the residents smoke.
-
Stay with your insurer. Some insurers reduce premiums by 5% after three to five years, and up to 10% if your remain a policyholder longer.