Home insurance costs homeowners around $1,200 a year on average. If we’re being honest, you may be paying more than you need to. Luckily, there are a few ways you can save on your home insurance. Follow these 9 steps to ensure you’re getting a quality policy for a reasonable rate.
9 Ways to Save on Your Home Insurance
The following are some of the best ways to save on homeowners insurance.
Increase Your Deductible
A deductible is the amount a homeowner agrees to pay out of pocket in the event of a claim. For example, people with a $500 deductible, can save up to 20% by increasing it to $1,000. This happens because your insurance provider recognizes you’re willing to pay more upfront in the event of a claim. In return, they’ll lower your premiums.
However, you should always be mindful when raising your deductible. Although it sounds nice saving money, you should never raise your deductible higher than you’re willing to pay. Therefore, take into account how often you file claims and how much you’re willing to spend.
Talk with a home insurance provider who can guide you in the right direction and pick a deductible that works for you.
Take the Proper Security Measures
Riskier homes usually cost a lot more to insure. This can be because you don’t have any security measures in place or you may live in a high-crime area. Your provider will take these things into account when deciding your rates. Therefore, they’ll probably require a higher premium if your home is deemed risky.
As a result, you should install things like a security system, smoke alarms, motion sensor lights, and deadbolt locks. Doing so can save you between 5 to 20 percent on your home insurance.
Avoid Filing Claims When Possible
While filing a claim is your right as a homeowner, you should always assess whether or not it’s worth it. This is because the more claims you file, the more your premiums will increase. Therefore, if a relatively minor incident occurs, you’re probably better off paying it out of pocket.
Oftentimes providers will offer discounts to homeowners who go a certain period without filing a claim.
Ask about Discounts
If you don’t bother to ask your agent about discounts, then you could be missing out on some major savings!
For example, the following are some additional discounts you can receive:
- If you’re a teacher, firefighter, or engineer
- No one smokes in your household
- You recently purchased your home
- You choose paperless billing and opted for automatic payments
Make Home Improvements
Homeowners that make safety improvements in their homes may be eligible for a discount. You can request an inspection and an insurance adjuster will come out and assess the improvements you’ve made.
Such improvements can include replacing outdated wiring or plumbing, adding storm shudders, and installing impact-resistant roofing.
Bundle Your Home and Auto
Pretty much everyone needs auto and home insurance policies; therefore, most insurance companies provide discounts if you bundle. You can save anywhere between 15 and 20 percent on your insurance if you have your policies with the same provider.
Improve Your Credit Score
A higher credit score represents your ability to pay your premiums on time. Individuals with poor credit scores usually pay more for insurance than others. For instance, people with credit scores lower than 630 may have this problem.
The best way to avoid this is by paying your bills on time and keeping your credit card balance low.
Eliminate High-Risk Items from Your Home
Things like a swimming pool, trampoline, playground equipment, etc. can increase your insurance policy premiums. This is because insurance providers deem these items as risky and believe you may be more likely to file a claim in the future.
If these items are impacting your premium amount, then we suggest removing them if possible.
Shop Around Annually
It’s best to shop around every year to see if you can get better rates with a different insurance provider. You can save as much as $1,000 every year by doing so.
Home insurance policies can be expensive, but things like shopping around, removing high-risk items, improving your credit score, and more can make it much more affordable. We are sure you will save some money by following these simple steps.