6 Tips to Lower Your Homeowners Insurance Rates

Do you own a property? If yes, then you must know that homeowners insurance is one expense you can’t avoid. The two important factors that decide the cost of home insurance rates are your home’s age and its location. However, the average insurance premium for homes is $1,192.

It may seem like a big expense, but keep in mind that you get the amount reimbursed if your property suffers any damages. That means having homeowners insurance is one way to protect your most valuable investment. Moreover, lenders or mortgage companies also require homeowners to buy homeowner insurance.

Regardless of the type of homeowners insurance you opt for, you need to ensure that you get the best policy for an affordable price. Here are a few tips to decrease your homeowners insurance rate.

Tips to Lower Your Homeowners Insurance Rates

1.      Do Some Research

While you may get plenty of home insurers’ options from your mortgage lender, it’s not necessary to stick to their suggestions. It’s always better to shop around for the best policy yourself. We recommend you contact at least three to four insurers to get quotes. You may also use different online portals to gather quotes.

2.      Stay in Contact with Your Insurance Agent

You must have sufficient information about what your current policy entails before you go looking for other ways to lower insurance costs. No matter how easy your contract may seem to understand, the renewal documents can be confusing.

Speak with your insurance agent if you find it difficult to understand, and make sure you know the ins and outs of the coverage.

3.     Go For Every Available Discount

Insurance companies offer a variety of different discounts to homeowners. That means you can get discounts for making upfront payments for annual premiums in full or keeping the policy for multiple years.

If you’re a new construction owner, you may get a discount of up to 35 percent. Also, if you buy your auto and home policies from the same company, you can save more than 19 percent on the total cost. 

4.      Understand Your Deductible

Typically, the higher deductible you have, the lower the insurance premiums you will pay. Boosting premiums by $500 to $1,000 can help you save 25% on total premiums.

5.      Invest in Flood Insurance

Many home insurance companies don’t cover damage from flooding, even if floods may cause significant destruction to properties. Most mortgage lenders require property owners to have flood insurance if they live in flood zones. Even if you don’t reside in a flood-prone area, investing in flood insurance is wise since it doesn’t cost much.

6.      Shop Around Twice a Year

This tip is a great way to check whether you have the best rate and coverage or not. Once you know how much coverage you have and get relevant discounts, check what other insurers offer periodically.

Summing Up

All in all, having a homeowner insurance policy may help you avoid hefty costs if your home experiences damage. Thus, the given tips can help you opt for the best policy at a fairly reasonable price.


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