The recent storms in Kentucky did their share of damage. But what lies ahead could be worse. With storms in the spring of 2008, Hurricane Ike in September 2008, and harsh ice and wind storms in 2009, insurance companies throughout the country and state could raise premiums to recoup large losses from claims. If they do, here’s how you can save while still maintaining adequate coverage.
Check your riders and endorsements
Talk to your agent about what is and is not covered on your homeowner’s policy. John Blackford, an agency manager for Kentucky Farm Bureau in Louisville, says things such as earthquake coverage, water backup/sump pump overflow, and flood insurance are excluded on most policies.
“If you have these, it’s likely you are paying extra for these coverages. The same is true for scheduled items such as jewelry, collectibles, and other valuable items. Determine if your riders and endorsements are still appropriate for your situation. If not, eliminating any unneeded endorsements will help you save,” Blackford explains.
Check your deductible and coverage amount
Obvious ways to lower the cost of your insurance is to raise the deductible or decrease the coverage amount on your home or personal property. For older autos, you may consider dropping pricey collision coverage and keeping comprehensive coverage only. Review with your agent whether you have flexibility in these areas.
Look for discounts
The insurance world is a competitive business, and companies will work with you to keep or gain your business. “Most insurers offer multi car discounts, discounts for younger drivers including good grades and driver training, and multi line discounts (i.e., the company also writes your home, auto, boat, long term care and life insurance),” Blackford says. “These are things your local agent should be talking with you about to make sure you are getting the most affordable coverage possible.”