Home may be where the heart is, but it can be costly if a homeowner makes bad choices when it comes to insurance coverage. While being underinsured can be an expensive mistake, there are other things homeowners do that can make their premiums too high. Below is a brief look at five common mistakes that can increase the cost of Homeowner’s Insurance in Houston.
Keeping Things the Way They Are
Most people comparison shop when buying cars, appliances and clothing–but when it’s time to buy home insurance, many keep the same coverage from year to year. If one never shops around for a lower rate, they’re more likely to pay too much. According to industry experts, homeowners should evaluate their coverage and their premium yearly.
Forgetting About Upgrades
Installing new fixtures, upgrading the kitchen and making other home improvements will undoubtedly provide a great deal of satisfaction, but it can be costly if the homeowner neglects to upgrade their insurance at the same time. Major upgrades can improve the appearance of the home, but they can also increase the value–and it will cost more to replace them in the event of a loss. Certain features, such as trampolines or swimming pools, can increase a homeowner’s liability and, therefore, their monthly premium.
Having Poor Credit
Some may believe that credit score doesn’t matter where home insurance is concerned, but it really does. The credit score can increase the premium paid each month. There’s a link between poor credit and claims history; those with lower scores often let bills slip, along with general home maintenance.
Setting a Low Deductible
No one wants to pay a big deductible when there’s a loss, but setting it too low can end up being very costly. If the deductible is set too low, it encourages some homeowners to make more claims than if the deductible was higher. By setting the deductible higher, it forces homeowners to avoid making frivolous claims–and it can keep premiums lower.
A great thing about Homeowner’s Insurance in Houston is that Metro Allied Insurance offers many discounts. Homeowners can get discounts for bundling other types of policies, for being retired, or for being a non-smoker. Even living in a deed-restricted community can yield savings. It never hurts to check.
