5 Ways to Lower Your Home Insurance Premium

A homeowners insurance policy is necessary to protect your most valuable investment, which is the dwelling that houses your family. In the crush of life and business, it’s easy to put your NJ Home Insurance renewals on automatic pilot, particularly if it is in an escrow account your lender manages. 

We’re writing this post to discourage you from using the “set it and forget it” philosophy for your homeowners insurance. It’s your money, and we want you to keep as much of it as possible. That’s why Dickstein Associates Agency provides tips for ways to lower your NJ Home Insurance costs. 

Noteworthy NJ Real Estate Market Conditions

For the record, it’s critical to mention two dynamics currently driving prices in the NJ real estate market. The first is demand. The market is red hot with constant reports of sales going to cash buyers competing with over asking price bids. Buyers using traditional lending methods or who place contingencies or other demands on homeowners are taking a back seat to cash buyers. 

The demand is so strong that 50% of NJ home sales in 2021 closed above the asking price, according to Charles Oppler, 2021 President of the National Association of Realtors. He says New Jersey real estate had a 15% increase in median sales price in the past year. 

The second dynamic is the pandemic is causing shortages of materials and labor. The result is the cost of building and repairing residential real estate has gone through the roof, if you pardon the pun. It’s understood the disruptions to supply lines, and workforce issues will settle down eventually. But when and if prices will recede in the aftermath are not known.

Five Tips to Lower Your Home Insurance Premium

1.     Review your homeowner insurance policy. 

While you want to save money, you must keep your coverage adequate to replace your home and its belongings. With heated market conditions, you will likely need to raise your coverage limits than lower them. But you can increase your deductible from $500 to $1,000 if applicable. Do the math for higher deductible limits to know how many years without a claim you need to pay to save by going above $1,000.

2.     Upgrade Your Security And Make Home Improvements.

Securing your home with a smoke detector, burglar alarms with central reporting, and deadbolt locks are worth a 5% discount on most policies. Home improvements such as installing fireproof or impact-resistant roofing materials and storm shutters are potential extra discounts. Removing “attraction risks” like trampolines, swimming pools, and playground equipment are rate lowering improvements.

3.     Dig Deep for Discounts

Many policies have unadvertised or underpromoted discounts. It’s free to ask and could make a difference if you match specific conditions. Find out if your policy has discounts for new homeowners and non-smokers. Automatically deducted payments and paperless billing sometimes apply for lower rates. And certain occupations such as teacher, engineer, architect, and firefighter make additional discounts available.

4.     Bundle Your Policies and Avoid Small Claims 

Virtually all insurers with the option to provide auto and home insurance and life insurance, in many cases, offer discounts that can save 5% to 15% on the premium for their homeowners coverage. Recent claims, even relatively small claims, can increase your rates. Conversely, some carriers provide claim-free discount incentives for multiple years of no claims. Usually, it is an intelligent move to absorb the hit of nominal costs that don’t exceed the policy deductible by much. The savings with your lower premium can make avoiding a small claim pay off.

5.     Boost Your FICO Score

Your credit rating is an essential factor in the price of loans you make and the insurance you buy. Statistics kept by insurers show higher credit scores are safer risks for homeowner and auto insurance clients. There are often fixable items on credit reports that push consumers’ scores lower and lead to higher insurance rates. It’s sound advice to actively monitor your credit score to help you negotiate lower insurance premiums and loan rates. Your awareness will also help you stay alert to changes in your credit caused by identity theft.

6.     Bonus Point

Homeowner insurance is a competitive market, which means shopping around can save you money. As independent agents, Dickstein Associates Agency uses its network of carriers to shop prices and features to find the most comprehensive NJ Home Insurance coverages with the most competitive premiums for our clients. We would love the opportunity to put our expertise to work for you.

About Dickstein Associates Agency

Dickstein Associates Agency has distinguished itself as a leading provider of personal and business insurance in the tri-state area since 1965. We pride ourselves on being advocates for our clients and providing them with quality and affordable coverages. As Trusted Choice™ independent insurance agency, we partner with various national and regional carriers, allowing for flexible coverage for each client’s unique circumstances. For more information on how you can leverage all your insurance to work best for you, and how we can secure the best insurance in the marketplace suited to your specific needs and business objectives, contact us today at (800) 862-6662 or www.dicksteininsurance.com.