Is Homeowners Insurance Negotiable?

As homeowners feel the pinch of rising annual premiums, many wonder: Is homeowners insurance negotiable? If you’re thinking about chipping away at the price the way one might haggle at an automobile dealership, the answer is no. But if you are thinking about scrutinizing the line items that drive up year-over-year charges, you may find some wiggle room. In fact, the methods insurance companies use to calculate a home replacement cost estimate can work in your favour. 

How to Negotiate My Home’s Listed Dwelling Value

It’s essential to understand that trying to lower the cost of a homeowners policy must be based on hard numbers. Property owners trying to lower premiums typically believe they are somehow over-insured. Review the calculations and appraisals listed in the document and take a day to reflect. 

Call Your Insurance Agent for a Review

If you remain unsatisfied after discussing the cost drivers with a homeowners insurance professional, don’t hesitate to ask for a full review. Also, request an email outlining the estimates used to base the coverage. Make sure the following are included in the items used to estimate dwelling coverage: 

  • Total Living Space Square Footage 
  • House Description and Architectural Design 
  • Value of Outbuildings & Attached Garages 
  • Decking, Patios and Porches 
  • Distance from Emergency Services 

Personal property coverage and the presence of any high-value assets will also impact the premium. Last, the type of home replacement cost coverage and limits you select will also play a significant role in the annual coverage cost. 

Get Quotes from Other Insurance Companies

When shopping for homeowners insurance, the importance of secure coverage cannot be understated. Some companies offer what seems like a discount until you review the baseline numbers and coverage limits. But with the well-grounded numbers in hand, homeowners can make informed decisions about the best coverage options. 

Estimate Your Home’s Replacement Cost with the Douglas Cost Guide 

Another method to see if your home insurance policy provides you with adequate coverage is to use Douglas Residential Cost Guide to generate an accurate replacement cost estimate. Considered the gold standard in residential home estimates, its user-friendly online presence allows property owners to make accurate calculations. By using the Residential Cost Guide, homeowners can double-check the figures and arrive at a fair home replacement cost estimate and full coverage. 

Review the Values on Your Insurance Policy Every Year to Ensure Your Insurance Coverage Is Accurate

Reviewing your homeowner’s policy each year remains a prudent exercise in due diligence. Unless you have reliable figures to compare to the insurance company’s estimates, you could be overpaying. The Douglas Cost Guide puts more than 30 years of experience to work and inputs the most up-to-date data so that homeowners can negotiate from a position of strength.