by Michele Newbern Gillis
Staff Writer
How can our clients save money on their homeowners insurance?
That was the main question asked of an insurance panel during the Amelia Island/Nassau County Association of Realtor luncheon last month.
The panel was made up of David Cabell, Cabell Insurance Agency; Ed Wilson of Morrow Insurance; Shaun Woleshin of John T. Ferriera Insurance; Shiela Fountain of Farm Bureau Insurance; and Wes Sheffield of Amelia Insurance.
Fountain told the group that there are a few things homeowners can do to reduce premium cost of homeowners insurance.
“The first thing we suggest is that people raise their deductibles,” said Fountain. “One reason for that is if you have a $500 deductible, you don’t want to file a claim for $650. We recommend you raise the deductible to at least $1,000.”
Fountain said customers also get a credit on your insurance if they have a new home.
“You can also get credit if you have smoke alarms and a central burglar alarm,” said Fountain. “I don’t recommend that you put one in to get credit because the credit is not that much. If your house is built out of brick, you will get a better credit than if your house is framed.”
There are also certain wind mitigation incentives that can be given if your new house has building features that reduce damage during high wind events like hurricanes.
Building features that reduce wind damage include improved roof shingles, strong roof decks, hurricane clips/straps, impact resistant glazing or shutter protection for windows, roof shape and other construction techniques.
Other topics that were discussed were whether clients should get either flood or wind insurance.
“I would advise them to get both,” said Sheffield. “The safest thing to have is wind and flood insurance.”
The last few years of natural disasters have also affected rising insurance rates.
“Insurance costs have risen over 25 percent over the last five years,” said Cabell. “The companies are really just trying to recoup a lot of losses. All the recent hurricanes cost insurance companies $35 billion in losses in two years. That’s a lot of money. The reinsurance companies are raising their rates, so the homeowner’s insurance companies are raising their rates, too.”