How Do I Slash My Farm Homeowner’s Insurance Costs?
We want to help you save money and slash your farm homeowner’s insurance costs.
Also, we are here to help you pick the perfect tractor when the time comes.
Time to get started.
Let’s face it --- farm homeowner’s insurance is typically an expensive grudge purchase.
It protects you financially if your farm home is damaged or destroyed by a disaster, weather, wind, fire, or crime.
If you have a mortgage, you are usually required by law to have homeowner’s insurance. This protects the lender until you pay it off.
The challenge is that insurance can get pricey.
What you may not know, is that there are many ways to reduce your insurance costs. First you need to analyze your coverage options.
Slashing the Cost of Farm Homeowners Insurance
You likely pay for farm homeowner’s insurance to protect your home and property.
Therefore, you need to review your farm homeowner’s insurance coverage.
There are five things to review that could help you slash your insurance costs. Let’s go through them.
This one is very simple.
Start by doing comparative shopping for the best insurance price.
There are plenty of options. Just remember that insurance policies differ greatly, as do providers. Costs and coverage will vary dramatically, depending on a host of factors.
One thing you can do is check out online aggregator sites. They will compare the various prices of farm homeowner’s insurance premiums based on your needs. You can just look up “insurance aggregator sites” using any major search engine.
You also want to make sure you find an insurance provider that is financially solid. Some are not.
Don’t limit yourself to one or two options. Make sure to also check out direct writers, captive sellers, and independent agents. All of this can be done online or through referrals.
You may be surprised how much you can save by simply shopping around.
Boost Your Credit Score
This is a great way to reduce the cost of your mortgage terms
It is also a great way to reduce the attendant annual fees you pay for farm homeowner’s insurance.
People with high credit scores get preferred rates on home loans, credit cards, vehicle financing, and insurance.
A high credit score will help the insurance company’s adjuster give you a favorable risk profile. This could help lower your costs.
To raise your credit score, you can pay down credit card debt, reduce the principal on your existing loan, make payments on time, and limit the number of accounts on your profile.
In time, your credit score should rise.
Install a Farm Home Security System
Another way to lower your farm homeowner’s insurance is to add protections to your property.
Essential security systems with burglary detection and fire monitoring are a great start. You can also add video cameras, leak detectors, and low-temperature sensors. Insurance companies look favorably at these add-ons and extra protections.
This could lead to a discounted rate on your farm homeowner’s insurance policy.
Raise Your Deductible
There is a lot of merit to raising your deductible (out-of-pocket expenses).
It can lead to getting a far more affordable farm homeowner’s insurance premium.
If you hardly ever make claims --- you may want to consider increasing the size of your deductible in exchange for a much lower premium.
Many insurance deductibles fall as low as the $100 range for premium-grade farm homeowners plans. If you increase your out-of-pocket expenses to $1000+, you should see a significant decrease in your insurance premium.
Now… if you make several small claims with your insurance company, you will quickly see your farm homeowner’s insurance costs rise. In some instances, they may cancel your policy outright.
Rather than risk getting your rates raised or your policy canceled --- you can pay your out-of-pocket expenses at a higher rate and keep your insurance costs lower.
“Bundling” happens when you combine your various insurance policies with one insurance provider.
For instance… you can bundle auto, boat, motorcycle, and farm homeowner’s insurance with one provider. Or you can bundle at least two types.
These bundle (packaged) deals are designed to save you money in the long-term.
Many insurance companies offer discounts when you bundle. This can be anywhere from 5%-15%. You just need to take the time and shop around.
If this is your first time applying for a farm homeowner’s insurance policy, you may qualify right away for a new policy discount.
Also --- be sure to tell the insurance broker that you are a non-smoker. This makes you less of a fire risk.
NOTE: Your farm homeowner’s insurance policy covers your home and your property. If you are going to rent out your farm home to tenants, then you will need to take out a renter’s insurance policy as well.
Hopefully, this information helps you slash your farm homeowner’s insurance costs.
If you need any further help or have any questions about insurance, tractors, or anything else, please contact your dealer, local mechanic, or call us at 602-734-9944. Please ask about our current new and used tractor supply.