Homeowners in Illinois pay an average of $189 per month for $300,000 in dwelling coverage. This rate comes out to around $2,300 per year, though it can be much higher depending on your home’s value or whether you use it as a place of business.
Despite high average costs, many homeowners in Illinois are still overpaying for insurance. By following these simple tips, you may be able to reduce your monthly premiums by hundreds of dollars while still maintaining adequate coverage for your property. When comparing rates, here are 10 things to keep in mind:
1. Higher Deductibles Can Deliver Lower Premiums
Many homeowners can pay less for the same coverage limits by opting for a higher deductible. This can be useful for homeowners who rarely file claims or have separate deductibles for more costly incidents, such as hail or windstorms.
2. Policy Bundles Can Help You Save
By bundling your homeowners insurance with your auto policy, you can put your premiums under one roof. If your insurer offers a bundling discount, you may be able to maintain your current level of coverage at a lower rate simply by moving other policies to your homeowners insurance provider.
3. Different Providers Offer Unique Services
If you believe you are overpaying for homeowners insurance, you can shop for other providers. Ask for numerous quotes to learn what each company offers, including their claim filing services and bundling options.
4. Understand Cash Value vs Replacement Cost
Cash value and replacement cost are two possible reimbursement methods for a policy claim. Cash value policies reimburse homeowners for the current value of their structures or materials while replacement cost reimburses the actual cost of replacing or repairing the home. This represents a significant difference in the value of a homeowners insurance policy, especially for older heritage homes where depreciation can severely reduce a cash value claim.
5. Disaster-Proof Homes are Easier to Insure
Disaster-proofing your home with storm shutters, shatter-proof glass, or stronger roofing materials can lower your premiums. Your insurer may reward your efforts to make your home more resilient to damage by charging less for your disaster coverage.
6. Home Security Upgrades Can Lead to Savings
Home security upgrades such as surveillance cameras, new locks, alarms, and more can make your home a safer investment for your insurer. They may offer lower premiums on theft protection following these upgrades.
7. Improve Your Credit Score for a Policy Reduction
Improving your credit score by reducing debts, paying off credit cards, and paying your mortgage on time may increase your policy provider’s confidence in your reliability. In fact, you might be overpaying for your current policy if your credit has improved in recent years. If you renegotiate, they may offer a lower premium.
8. Remain Claim-Free
You may be overpaying for your policy if you file too many small claims since this flags your insurance company to treat your policy as a high-risk investment. Try to remain claim-free so you can switch providers with a clean record or renegotiate your current premiums.
9. Ask for Additional Discounts
You could be overpaying for insurance if you have not asked your agent about discounts specific to your situation. If your situation has recently changed, ask for a re-evaluation to determine your potential discounts. Running a business out of your home, for example, may change your coverage needs.
10. Review Your Policy Every Year
If your situation has changed, your current insurance policy may include coverage you no longer need or coverage that is too little for your new asset value. An experienced financial advisor can compare your current liability limits to your current homeowner insurance needs to determine whether you should change your deductible, buy or remove coverages, bundle your policy, or switch providers.
Contact Pro Insurance Group For Affordable Homeowners Insurance in Illinois
At Pro Insurance Group, our experienced team can help you determine whether you’re overpaying for your home insurance. Often, homeowners come to us without knowing where to cut back or how to improve their premiums.
We offer custom insurance services to help homeowners in Illinois compare rates and find the best insurance for their situation. Contact our team today to learn how you can pay less for homeowners insurance without sacrificing the coverage you need.