We get that price is important. Whether you are buying the latest, greatest gadget, or shopping around your home and auto insurance, everyone wants to get the best deal. However, there is an old adage that is still true today: you get what you pay for. This rings true with insurance of any type, and especially with NV homeowners insurance. The best deal is very often not the cheapest price and it is important you understand that all homeowners insurance policies are not created equal. There are many ways to make the policy “cheap” yet only a few of them benefit you as the policyholder
We had a call a few days ago from a customer with a home in Henderson, NV that was insured for $340,000. She was currently paying $430 per year for her homeowner insurance and was looking for a better price. Admittedly she was a great potential customer – no claims, high insurance score, new home in a nice area. The best rate we could find was around $460 per year. We asked her to email us a copy of her current policy declarations page so we could compare the coverage line by line. Her current policy was a mess. To get the price of $430 her current insurance agent had slashed coverage everywhere. Personal property coverage was written on an actual cash value basis instead of replacement cost and had been lowered to 50% of the dwelling amount instead of the normal 70%. The dwelling did not have extended replacement cost coverage and the policy contained only $100,000 of liability coverage. The deductible had also been raised to $5,000. The caller was completely unaware of how stripped down her coverage was and, ironically, thought $430 was still too expensive.
Here’s the deal: we will not strip coverage to make an NV homeowners insurance policy cheap. In the end, that stripped down policy benefits no one. However, there are some legitimate ways to lower the premium such as:
- Multi-policy discount: insuring your auto and home with the same company can provide a discount of up to 20%.
- Gated community: many insurance companies give a credit if your home is a gated area. Make sure you mention that when getting quotes.
- Occupation: teachers, engineers, military, police, firefighters, and other occupations may qualify for special pricing or discounts with certain insurance companies.
- Deductible: years ago the standard deductible was $500. Nowadays $1,000 is more common. If you can afford to go higher it might save a lot of money. Just make sure you can afford the hit if you actually do have a claim.
- Alarm system: installing a monitored alarm system qualifies you for up to 20% in credit.
- Green discount: Travelers Insurance Company offers a credit for homes that meet Energy Star standards for efficiency and energy savings.
- Non-smoker: many insurance companies give a discount to non-smokers.
Before you purchase a stripped-down cheap policy, let us review the coverage and give you an alternative quote. You might find we can provide far better coverage for not much additional premium. And that represents a true value.