A recent survey by ACE Private Risk Services, found that many families are overpaying for unneeded coverage and that this situation has been getting worse over the last 4 years. In addition to paying too much, many high net worth families are missing out on ways to save on their premiums while ensuring they have enough coverage.
Here are some easy ways to lower premiums while maintaining full coverage:
1. For people who are financially secure, a higher deductible on their homeowners and auto policies can save them a lot of money each year.
For example, a homeowner may save as much as $900 a year on a million dollar home simply by raising their deductible from $500 to $2,500. According to ACE since most homeowners only make a claim about once in every 20 years the savings could be significant.
2. Bundling policies. Customers can save a lot by bundling policies with one company. Combining homeowners, auto, boat, liability, etc. together will often result in a much lower premium than having multiple policies with several companies. Another important reason to bundle is that it's easier to keep track of policies and make sure there are no coverage gaps.
3. Home security systems. Anything that will help protect the home and it's contents such as a burglar alarm, a battery backup for a sump pump, a water leak detection system, etc. will allow the homeowner to take advantage of discounts resulting in lower premiums.
4. A yearly insurance checkup. It is important for homeowners to periodically check over policies to make sure they are fully covered and that they are getting all the discounts they are entitled to. Many people neglect to do this and the result is that they are under insured for newer items that they've purchased.
Most of these tips will work for all income groups even though those that have high a net worth will likely benefit the most.