Here are 5 tips and tricks that will help Arvada residents save money on their insurance premiums while avoiding some of the most common pitfalls consumers have when it comes to purchasing insurance:

1. Insuring a home for its real estate value not rebuilding cost.  Insurance is designed to cover the cost it would take to rebuild your home rather than its market value.  For many this means that you may actually be able to decrease the current limit on your homeowners insurance coverage.   However, before you do that, be sure to speak with a qualified insurance agent that can provide you with some direction on the proper limit for your home.
A better way to save on homeowners premium: Raising your deductible is a much easier to save some money on your homeowners insurance.  Just raising your deductible from $500 to $1,000 can save you up to 25 percent on your insurance premiums.
2. Selecting an insurance company by price alone.  While most consumers are always seeking to save money on their insurance premiums, it’s important to take careful consideration of the insurance company you are placing your coverage with.   Do you know if they are financially sound?   Have they had issues with peacefully resolving claims in the past? Do they provide the proper coverages without obscure exclusions that may actually eliminate coverage on your policy?
A savvier way to pick an insurer: Work with an independent insurance agent.   An independent insurance agent can provide you with multiple insurance quotes from a variety of top-rated insurance companies.   They can provide valuable insight into the coverages each company provides and will be there as your advocate in the event of a claim.
3. Dropping flood insurance.  While dropping flood insurance may be an easy options to consider as you are trying to save money on your insurance, keep in mind that flood is one of the most common claims homeowners experience (90 percent of all disasters involve flooding) and the damages from a flood can be devastating.   Homeowners insurance doesn’t provide flood insurance coverage.   Rather, flood insurance must be purchased through the National Flood Insurance Program.
A smarter way to lower flood insurance costs: Before purchasing any new home, we recommend checking what kind of flood plain the home is in so you have a good idea of the associated insurance costs.
If you already own a home and it is in a flood zone, you still have some options: you can increase your deductible or help flood-proof by elevating the structure or other means.
4. Purchasing only the legally required amount of liability for your vehicle.  Some consumers, in an effort to decrease their premiums, will lower the limits carried on their auto insurance to state’s minimum required limits.  As many states require limits of only $10,000 or $15,000, we strongly advise against doing this.   One significant claim will immediately wipe out any limits and you will be personally liable for the difference.
A less risky way to cut auto insurance costs: If you are looking for ways to decrease your auto premiums, we recommend increasing your deductibles or taking a defense driving course.
5. Neglecting to buy renters insurance.  If you renting a home or apartment you should never skip on purchasing homeowners or renters insurance.   Most policies cost less than $200 annually and will provide coverage for all of your property located inside the residence.  In addition to coverage for your contents, renters insurance policies also provide liability protection as well.
A good way to cut the cost of renters insurance: Look into multi-policy discounts. Buying several policies with the same insurer, such as renters, auto and/or life insurance, will generally provide savings.
If you are looking for additional ways to save money on your insurance, please don’t hesitate to contact our office and one of our representatives will be more than happy to assist.