15 Ways to Lower Your Homeowners Insurance Premium

not. 2: Talk to an insurance agent

As you get started, talk to a local insurance agent to find out what’s covered and what’s not. Some companies have more expensive basic policies that are more comprehensive, but you don’t want to pay for any coverage you don’t need.

no. 3: Increase your deductible

Your homeowners insurance deductible is the amount you must pay for a loss before your insurance provider begins paying a claim. higher deductibles translate to lower premiums because you pay more out of pocket when you file a claim. most homeowners opt for a $1,000 deductible, but many companies offer $500 and other amounts.

Reading: How to reduce home insurance premium

Keep in mind to be practical when choosing your deductible. going too high could backfire – you should always be able to pay for the repair out of pocket. Also, your policy may have separate deductibles for different types of damage, such as hailstorms, earthquakes, or windstorms.

not. 4: File claims wisely

Homeowners insurance companies can penalize you over time for being a high-risk customer or filing too many claims. they can increase your premium and, in some cases, even cancel your policy if too many accumulate, which can make it difficult to purchase another policy from a different company. therefore, if the damage is affordable, it may be more beneficial to pay out of pocket than to file a claim.

not. 5: Buy your auto and home policies from the same insurer

Bundling your auto and home insurance policies can save you up to 15% compared to some companies. In general, this is more cost-effective than buying coverage from multiple companies.

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not. 6: Be a loyal customer

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Many home insurance companies reward loyal customers. Staying with the same insurance company for several years (usually at least 3-5 years or more) can bring financial rewards. Owning a long-term policy has this advantage, but it’s worth it to shop around every year or every few years.

no. 7: Invest in security features

Improving the security of your home by installing protective devices like deadbolts, burglar alarms or smoke detectors can result in significant discounts. some companies give increasingly larger discounts depending on the degree of sophistication of these devices, cutting even more if you have alarms that call the police.

It will cost you money up front, but it will make you feel more secure and save you money in the long run.

not. 8: Research all available discounts

Different companies offer different discounts. some offer as few as three, while others offer many more than that. Before signing up for a policy, always do your research to see how many you qualify for. many different types are available, from 55 and up to newly purchased homes, auto payment, energy efficiency upgrades and more.

no. 9: prepare your house for disasters

Making your home more disaster resistant can save you money. check with your insurance agent to see if installing features like storm shutters or upgrading plumbing, heating, and electrical systems will result in a lower premium. This can also apply to remodeling old houses or reinforcing your roof. These compromises may seem costly at first, but they can eventually pay off.

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not. 10: Maintain a strong credit score

You can lower your homeowners insurance costs by establishing a strong credit history, as homeowners insurance companies often use credit information to determine quotes. having bad credit can make you seem like a high-risk customer, which will increase your premium.

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Maintain a strong credit score by keeping your credit balances low, paying your bills on time, being careful not to get more credit than you need, and not opening too many credit cards.

no. #11: Review your policy limits and take inventory annually

You never want to pay for coverage you don’t need. Expensive items can decrease in value over time, so you may need to lower your float for “valuable” items. There are a variety of online home inventory apps to help you catalog your items and their value.

no. 12: pay the total in advance

Many homeowners insurance companies charge fees to customers who make monthly insurance payments. You can often save money by paying in full when the billing cycle begins.

not. 13: lower risk of flooding

Most home insurance companies don’t cover flood damage, but it’s the number one insurance claim in the country. You can take steps to lower your insurance premium if you live in a high-risk flood area by elevating your home and utilities and installing proper flood openings.

not. 14: Consider the key factors when buying a house

There are a variety of factors you can consider when shopping from home. proximity to fire stations, fire hydrants, and emergency stations may reduce the amount you pay. You can also search for homes with newer heating, plumbing, and electrical systems.

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not. 15: eliminate security risks

Some home insurance companies charge extra for safety risks like a swimming pool or trampoline. while these are fun, they are important responsibilities. getting rid of them can prevent your premium from going too high. in some cases, building a gate or fence around the pool will solve the problem.

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