USAA is a highly competitive financial services company known for its financial strength and outstanding service to its members. USAA owns or
manages assets of $83 billion, and provides insurance, banking, and
investment products to more than 5 million members of the U.S. military
and their families.
Call your insurance company anytime you make
improvements that affect the value of your home,
and evaluate your homeowners policy at least
once a year to ensure your coverage keeps pace
with improvements or rising value. Your policy
should cover your home's replacement value (the
amount it would take to rebuild your home if it
were destroyed), not the market value (the price
you could get for your home).
Think you're paying too much for homeowners insurance? You
could be making expensive mistakes without knowing it.
While you may have little control over political, regulatory, and
business environments that affect rates, you can take steps to avoid
costly claims that could send your premiums through the roof.
Here are some tips for keeping your homeowners rates in check.
First Things First
Before you do anything else, make sure you understand what
your homeowners insurance policy does and does not cover.
Remember that insurance is best used to protect against the
high cost of major losses that would be difficult or impossible
to pay out of pocket.
If you use your insurance policy as a home-maintenance
policy, you'll find that filing repeated claims for minor repairs
could prove expensive in the long run. Some companies,
including USAA, use claims frequency to predict future risk,
often resulting in higher premiums, higher deductibles, and
occasionally, declined coverage.
Quick Fixes
One of the easiest ways to keep your home in good condition
- and your insurance rates in check -- is to conduct routine
maintenance.
Some tasks, such as cleaning chimneys or replacing toilets,
may require the help of a professional. But with time, patience
-- and, yes, a little cash -- you can probably handle the small
stuff on your own.
No Down Payment
Your VA home loan benefit can make your dream of becoming a homeowner a
reality. Buy a new home with no down payment. With interest rates at record
lows, there's no better time. Apply today.
Choosing the Right Materials
If you're remodeling, shopping for a new home, or building
from the ground up, look beyond aesthetics. According to the
Institute for Business & Home Safety, non-combustible roofing
materials such as tile, metal, slate, and treated wood can
make your home more fire resistant.
Exterior walls and roofs made of fire- and hail-resistant
materials reduce your risk of severe damage, which may result
in lower insurance rates.
Exterior
Geography. Most insurance companies charge more for
homeowners insurance in high-risk areas such as wildfire
zones or coastlines.
Structure. Some building materials may lower risk, which
could translate into lower insurance rates. In general, homes
made of fire-resistant materials, such as brick and stucco,
receive a lower rate than those made of wood.
Fire protection. Usually, a house that is more than five miles
from a responding fire station falls into a higher-rated category.
Roof. Some insurance companies offer discounts for durability
- in fact, USAA offers lower premiums in some locations
for roofs that are hail-resistant. Concrete tile, for example,
withstands hail better than wood shake.
Interior
Safety features. Many insurance companies offer discounts
for fire- and burglar-alarm systems. USAA gives a discount
of 2 to 15 percent, depending on the types and combination
of alarms or sprinklers in the home.
Age of home. Older heating, plumbing, and electrical systems
create a risk of fire and water damage. Many insurers
may offer discounts on newly built homes. For example,
USAA offers a 20 percent discount on the premium for a new
home and discounts of 2 to 18 percent for homes less than
10 years old.
Watertight seals. Secure seals around sinks, tubs, and toilets
help avert water damage claims which, in turn, prevent premium
increases due to claims activity.
