The wealthy and, for that matter most homeowners, tend not to pay a lot of attention to their homeowners policies. This can easily result in missing meaningful opportunities to lower the cost of these policies. There are a number of ways this happens.
"Many agents fail to adjust the homeowner policy limits based on the insurance appraisal of the property; or the appraisal is ancient and the coverage has been just automatically increased for inflation over the years," explains Heather Maki, a personal insurance advisor at Darton & Company, Inc., "This lack of attention allows the dwelling and other structures to become over-insured resulting in inflated costs."
Most of the houses owned by the wealthy have security systems and many of them are periodically enhancing their systems. "We're regularly called in to evaluate the home security systems in high-end residences and estates, and upgrade them to meet the needs of the family," notes Carolyn Renzin, managing director at Guidepost Solutions, LLC, "These upgrades can be involved because of the addition of sophisticated surveillance technology." With respect to homeowner policies, the failure is usually in communicating these upgrades to the insurance companies. You're likely to be able to get significant premium credits for advanced security systems.
It's common for the wealthy to remodel and update their homes. Too often this is not discussed or communicated for insurance purposes. You might be able to receive renovation credits for the home modifications.
According to Maki, "What can be very effective; and often ends up being a missed opportunity for the insured, is the agent's ability to negotiate with the insurance company to improve the pricing on accounts with premiums over $25,000. Also, the insurance company's re-tiering of the home can lead to the possibility of maintaining the same coverage, while resulting in lower premiums."
The bottom line is that there are likely to be a number of ways to pay less for homeowners insurance. What's necessary is for everyone to continually stay on top of the situation, not just consider the matter once a year when your policies are renewed and your premiums rise.
- homeowners insurance