Do you want to save money on your insurance payments? Did you know there’s a way to do that without raising your deductible or lowering your coverage? The answer is bundling.
What is bundling? It’s a term to describe a multi-policy discount. If you have more than one policy with an insurance company, you may bundle those policies and, in the process, you can save on all.
Here’s why you might consider bundling:
- Bundling can save you money. Depending upon the amount of coverage for your policies, and your state, you can save from 5% to 25%.
- Bundling is convenient. It simplifies bill paying and record keeping since you interact with just one insurer.
- Bundling can help ensure you are fully covered. Having all policies with one company allows your insurance advisor to review any gaps in coverage.
There are many different ways to bundle your insurance.
Homeowner’s Insurance Bundles
Your home is one of your greatest investments; you need to make sure that it’s fully protected. There are plenty of decisions to make when buying your own policy- from coverage limits to extra protection for your belongings. One of those decisions might be to incorporate additional coverage to enhance your policy. When you bundle those with your home insurance, you can save money.
You can choose to bundle your home insurance with:
- Sump pump endorsement: A sump pump is a device that collects excess water and drains it outside your home. Sump pump coverage covers the costs of repair and replacement in the event of a sump pump failure. Just a couple inches of water backup can cause thousands of dollars in damage – ruining carpets, destroying appliances, and crumbling drywall.
- Flood insurance: Regular home insurance does not cover flood damage. That’s why many people in flood zones purchase this extra policy. There is a 30-day waiting period to buy flood insurance, so take that into consideration.
- Auto insurance: If you have a vehicle, you likely have liability, collision, and/or comprehensive insurance. Liability coverage is used to pay for damages that you cause. Collision coverage helps to pay to repair your vehicle or get one of equivalent cash value if yours is totaled. Comprehensive coverage is for damage to your vehicle other than collisions, such as natural disasters, fires, vandalism, theft, and animals that damage your vehicle.
- College students and renter’s insurance: If your college student* lives away at school, his or her belongings are covered by your homeowner’s policy at 10% of the limit of liability or $1,000, whichever is greater. You may want more coverage than 10%. Talk to your insurance advisor about expanding limits, such as an umbrella policy to cover expensive items your student is bringing to college. Alternatively, consider purchasing renter’s insurance for your college student for an off-campus apartment. Renter’s insurance not only protects your student’s possessions but offers them emergency housing if they are unable to reside in the rental unit. Renter’s insurance is surprisingly affordable, so when you bundle it with your homeowner’s, it could practically be free!
*Note that college students must meet certain requirements in order to qualify as an insured on your homeowner’s policy. This includes age limitations, family relationship, and full-time enrollment in school. In the event of theft coverage, they must have lived in the location 60 days immediately before the loss.
- Earthquake Insurance: If you live in an area that is prone to earthquakes, you may want to consider this additional coverage. Homeowner, condo, and rental insurance policies typically do not cover earthquakes.
- Umbrella policies: This type of policy provides additional personal liability insurance that starts to pay after your underlying limits of liability on your home insurance policy have been exhausted after a covered loss. While there’s no way to know for sure how much liability coverage you may need, understanding what you stand to lose is a good place to start. If you’re being sued, it’s possible that equity in your home, your personal savings, and your income may be at risk. If the value of two years of your annual income, the equity in your home, and your savings exceed the liability limits on your auto or home insurance policies, then you should consider an umbrella policy to protect your net worth.
Renter’s Insurance Bundles
Renter’s insurance is like homeowner’s insurance but for tenants. Starting at about $10 a month, it protects your personal belongings (that’s right, your landlord’s insurance policy will not cover your belongings) but that’s not all. It’s an important safeguard if you’re found at fault for property damage or injuries at your place (and even around the world). It also can help if you don’t have access to your apartment or home due to a covered loss.
You can choose to bundle your renter’s insurance with:
- Auto insurance: As described above, auto insurance helps protect you in the event of an accident or other damage to your car. When you bundle your renter’s policy with an auto policy that you already have, the savings can be substantial.
- Pet insurance: Our pets are like family and we want to keep them as healthy as possible. Pet insurance can help to offset those veterinary expenses. Depending on your policy, pet insurance may cover exams, prescriptions, lab tests and x-rays, surgeries, emergency visits, and even cancer. You make the initial payment and then are reimbursed depending upon the deductible and limits that you have selected. (Pet insurance also may be bundled with homeowner’s, too.)
Auto Insurance Bundles
Auto and homeowner’s insurance, and auto and renter’s policies, are among the most popular types of insurance bundles. However, you also may wish to bundle your car insurance with a boat policy.
- Boats and personal watercraft: If you have a boat, you will need a boat insurance policy. You also need a separate policy for personal watercraft such as jet skis. The policies protect you from vandalism, accidents, and liability for injuries to others.
*Note that motorcycle insurance is not eligible for a bundling discount. However, if you live in a cold climate state, and only ride your bike in warmer months, you can ask about seasonal coverage.
Each year, California Casualty policyholders save an average of $423* a year. That could be even more if you decide to bundle your coverages. See how much you can save and get started with a free quote today at mycalcas.com/quote.
This article is furnished by California Casualty, providing auto and home insurance to educators, law enforcement officers, firefighters, and nurses. Get a quote at 1.866.704.8614 or www.calcas.com.