How To Lower Your Payment For Hazard & Flood Insurance
As you may have imagined, you are going to need hazard and flood insurance for your new home. This premium will be a part of your monthly payment. The premium will depend on a number of factors, and within them, will be the company you choose, and the discounts you get.
As one of my clients, I want to make you aware that the difference between one company and another, could be almost 100% + percent, for the same property.
While Citizens is the most popular insurance company in South Florida, their premium is normally about 1.5% of the sales price. However, I have access to two companies that will provide the same coverage for about half of the premium.
You will save hundreds of dollars a year on homeowners insurance by shopping around, and considering some of these tips.
Number one and foremost, SHOP! The difference between the lowest rate and Citizen's normal rate is 100% more! While you could get insurance for around 0.75% of the purchase price, I have had clients that end up paying twice that amount when they do not follow my recommendations.
Consider a higher deductible. Increasing your deductible by just a few hundred dollars can make a big difference in your premium. 2% deductible vs 5% .
.Ask your insurance agent about discounts. You may be able get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire retardant roofing material. Persons over 55 years of age or long-term customers may also be offered discounts.
Get a wind mitigation inspection. This inspection will probably save you 25% of your regular premium. Normally the inspection costs $150.00 - $250.00, but if you read my inspections page, you will included in your inspection
You do not have to insure the contents (unless you want).
Please note that Flood insurance is not covered by a standard homowner's policy, and it normally cost about $360.00 per year. About 95% of Broward County is located on a flood zone, so be ready. And you will also need to have Windstorm Insurance if you buy east of I-95.
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