What’s the Insurance “Drama” for Annapolis Homeowners?
DAVIDSONVILLE, ANNAPOLIS, EDGEWATER, ARNOLD AND SEVERNA PARK REAL ESTATE
The headline promised “Ways to Dramatically Lower Your Home Insurance Costs”—there were six of them—and indeed, it wasfollowed by some sage economic advice. Insurance isn’t often accompanied by high drama, but CNBC’s website can be forgiven for the hyperbole. The guidance for Annapolis homeowners was useful.
The six dramatic homeowner insurance cost-cutting items were a mixed bag—with three of them boiling down to variations on a single theme:
- Do your homework—and do so every year. When your agent sends you the annual renewal notice, that’s your cue to take the time to give your current coverage a critical once-over. Another point was aimed at the same idea: Talk to your insurance agent every year;as was the third point: Shop around every few years. Web portals (CNBC names Insure.com and InsuranceQuotes.com) can make gathering quotes easier than used to be the case. But a caution is in order: check the reputations of low-quoting companies.
One study turned up the fact that the majority (two-thirds) of U.S. homes are underinsured by an average of more than 20%. Stricter Annapolis building codes can make rebuilding an older home 25%-50% more costly. That kind of shortfall would be dramatic! The other key points were aimed at preventing such an outcome:
- Hike your deductible. This strategy is aimed at allowing Annapolis homeowners to hike their coverage without increasing the premium. Since making small claims is a sure way to increase next year’s premium, most people don’t make them, anyway—so increasing your deductible makes good economic sense.
- Get every discount. Bundling your auto insurance with the same company is already well-“dramatized” in ads, but some others—like having upgraded your roof or windows or having made energy-efficient alterations—can result in premium savings, too.
- Consider flood insurance. Annapolis homeowners who aren’t in an officially designated flood zone may not think about it, but typical policies do cover wind damage and exclude flood damage.
Another result of keeping Annapolis insurance policies up to date is actually pretty undramatic—it’s the peace of mind it brings. Feel free to call to chat whenever questions arise about your own Annapolis real estate matters!
DEBORAH LAGGINI, Long and Foster Real Estate, Annapolis, MD 21403
REALTOR, Annapolis, Davidsonville, Edgewater, and Surrounding Communities