In the search to find the best deals on a home, savings on homeowners insurance South Dakota is a top priority. Since this is a fixed cost that can eat up your monthly expenditure on a home, you want to get the best rates possible from the get go. Follow these steps to ensure you get the lowest, yet most applicable, homeowners insurance here in South Dakota.
Choosing Your Provider
Shop around when buying homeowners insurance in South Dakota, just as you did when finding the perfect lot and builder, or pre-built structure, for your new home. Every home insuring company will offer its own quote and determining factor, so do your homework. Avoid sticking with the same insurance carrier that you use to insure your automobile and life insurance policy, unless you have determined they will get you the best deal. Here are questions to ask:
- Is there a reduced rate for carrying multiple policies with the same insurance company?
- Will the insurance rate be reduced, or increased, with your latest purchase of a home? Consider how this purchase will effect your overall credit score, as homeowners can often exceed the desired debt-to-credit ratio with their latest home purchase.
Start with your regular insurance carrier and get quotes for homeowners insurance. Then go to the competitors and see what they can offer you. The worst thing you can do is stay loyal to an insurance company, only to lose money in the long run because you failed to vet other companies.
Go Local
In the state with fewer than 1 million total residents, estimated at 858,469 in 2015 per the US Census, you have a fair shot at finding a small town insurance provider. Use this to your advantage. Whether you live in Rapid City, Sioux Falls, Chamberlain or Lemon, your insurance agent is apt to be a local resident with ties to the community. Vet your potential insurance carrier by checking up on their company using social media and home insurance information sites. The more you can find out about the company, the greater your advantage when choosing a reputable and trustworthy insurance provider.
Boost Your Home’s Value
For an insurance agent, the biggest boost to a home’s value is an alarm system whether you live in the state’s most populated city of South Dakota, or the rural town of Platte with fewer than 1300 residents. After all, if an alarm system is installed in a home the chances that that home will be successfully burglarized are potentially decreased. The Electronic Security Association reports that homeowners can see a 15 to 20 percent discount on homeowners insurance thanks to security alarm systems installed on the property. Before committing to an insurance company, speak with a home security systems provider about setting up an alarm system. The system will need to be installed and activity operating prior to getting insurance on your home in order to include the safety precaution as an insurance benefit.
Preventative Measures Save Money
In South Dakota the most common natural disasters include floods in the river plains of Southeastern South Dakota, blizzards in the Black Hills, and extreme cold temperatures in the northern part of the state. This state is also on the outskirts of Tornado Alley, accounting for 29 tornados in 2014 alone as noted by the Tornado History Project. While South Dakota has plenty of safe places to live, preparing for natural disasters is important to all residents. Efforts to include in a disaster prepping plan include following the Insurance Institute of Business and Home Safety procedures for preventative standards. For the state of South Dakota the most prominent risks according to the IIBHS include:
- Flooding
- Hail
- Plumbing issues resulting from frozen pipes, flooding, fluctuating temperatures, etc.
- Thunderstorms
- Tornados
- Wildfires
- Winter weather
By taking preventative steps toward protecting your home against these threats, using the IIBHS standards for guidance, you can reduce the amount of money you spend a year on homeowners insurance in South Dakota. Furthermore, you reduce the risk and cost associated with being adversely affected by these natural disasters. As natural disasters can destroy homes and ruin lives, every precaution you can take will also provide you with peace of mind. There is no price tag on that feeling.
Financial Matters
If you want to save money on insurance costs in the future, consider raising your insurance deductible. While this will increase the amount of money you are paying on insurance premiums on the onset, it will save you money overall. As insurance coverage is meant to help you cover unexpected costs and expenses related to natural disasters, burglary or other circumstances, you should pay for this service in order to utilize it.
Having a higher deductible on your insurance will grant you with the coverage to take care of high priced losses, whether it be a total salvage in the case of a tornado or full remodel for a flooded home in South Dakota. Sure, cutting costs on homeowners insurance will help you afford your home. However, you want to avoid cutting corners on areas that will benefit you in the instance where your insurance will protect you from unexpected and sudden expenses. Therefore, read your insurance coverage premium, line by line, before signing the dotted line. Ask your South Dakota insurance agent about any terms or items you don’t understand so you have full knowledge of your insurance coverage.
2 Point Highlight
Shop around when buying homeowners insurance in South Dakota, just as you did when finding the perfect lot and builder, or pre-built structure, for your new home.
By taking preventative steps toward protecting your home against these threats, using the IIBHS standards for guidance, you can reduce the amount of money you spend a year on homeowners insurance in South Dakota.
