How to Save Money on Your Home Insurance (9 Top Tips)
Your home is most likely your largest investment. Home insurance is a valuable way to protect the investment, but could you save money on your home insurance policy?
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Home insurance rates are based on a number of factors about you and your home, but there are still many ways you reduce costs to get more affordable homeowners insurance. You’re probably wondering how to save on homeowners insurance, so here are the top 9 ways that you can save money on your homeowners insurance.
1. Bundle your home and auto insurance
One of the easiest ways to save money on your home insurance is to bundle your car and home insurance together with one company. Many insurance companies offer policyholders home insurance discounts for bundling if they purchase both their home and car insurance with the same company.
A bundling discount could potentially save you a significant amount of money on your insurance. If you don’t bundle your policies, see if your insurance company offers a bundling discount and see if it can save you money on your homeowners insurance premium.
2. Make improvements to your home (disaster resistance, roof, etc.)
Tackling some home improvement projects could not only make your home safer and more efficient, but it could also decrease the cost of homeowners insurance. If your home is older and has old electrical wiring, plumbing, and other systems, consider checking how much it would cost to upgrade them. Older homes typically have higher premiums. Older systems make your home more at risk for fire or flood, thus increasing your homeowners insurance premium.
Likewise, if your home’s roof is old, it’s more at risk for leaks and storm damage. Improvements such as these can help make your home safer and lower the cost of homeowners insurance because of the lowered risk of a claim.
3. Make your home more disaster-resistant
Another way to reduce insurance costs by reducing the risk of your home is to make your home more resistant to disasters. Some insurance companies may decrease your home insurance premium or offer discounts to those who have disaster resistant elements to their home. Severe wind, hurricanes, earthquakes, hail, blizzards, and other storms can cause significant damage to your home.
Depending on the weather in your area, you may be able to make your home stronger against severe weather conditions and, in turn, you may be rewarded with a home insurance discount.
4. Install safety and security features
One of the most common home insurance discounts offered by insurance companies is a discount for safety and security features in your home. This may include a burglar alarm, but also may include other home technologies.
If your home is equipped with safety and security features, make sure you’re receiving a discount for them if your insurer offers one. If your home has not yet been equipped with the technology, consider adding it to your home to improve your family’s safety and also lower the cost of home insurance.
5. Increase the deductible amount on your homeowners insurance
One way to lower the cost of your home insurance is to increase your home insurance deductible. A homeowners insurance deductible is the money you pay out of pocket when you have a home insurance claim. For example, if you have a claim and your policy has a deductible of $1,000, you would need to pay $1,000 and then your home insurance policy would kick in and would cover the remaining cost to fix the damage.
Increasing your home insurance deductible will likely lower the cost of your homeowners insurance premium. However, keep in mind that if you raise your deductible, it will cost you more money in the event that you have to file a homeowners insurance claim. Before raising your deductible, make sure it’s the right decision for you financially.
6. Make sure you’re receiving all the discounts you qualify for
There are a number of homeowners insurance discounts available that you may not even know about. Make sure you’re receiving all the discounts you qualify for in order to get the maximum savings.
Some home insurance discounts to look out for include a gated community discount, claims free discount, loyalty discount, age-based discount, affinity discount, and profession discounts (often military, medical professions, and teachers). When getting insurance, check with the company to see if they can provide you with a list of discounts the company offers. If you qualify for a discount, make sure you’re receiving it and it’s reflected on your policy.
7. Work on improving your credit score
In most states (except Hawaii and Maryland), your credit score may affect the cost of homeowners insurance. It may depend on your insurance company and if it uses your credit score as a factor for determining the cost of your homeowners insurance premium.
While there are many benefits to improving your credit score, a lower homeowners insurance price if one of them.
8. Reassess your home insurance coverage
If it has been a while since you’ve reassessed your home insurance policy, you may want to take a look at it and make sure it’s still a good fit for you. When you do this, look at your coverage options and limits.
Are there any coverage options included that you no longer need? Are there any coverage options that aren’t included that should be? Also make sure your personal property coverage limit still matches the value of your belongings.
Reassessing your coverage could help lower your homeowners insurance premium and also ensure that you’re not underinsured. The latter can help you save money in the long run if you were to need to file a claim.
9. Shop around for new homeowners insurance
Lastly, shopping around and getting multiple insurance quotes is one of the most important ways to save money on homeowners insurance. If you renew your policy every year with the same insurance company and you don’t shop around and test the market, you’re likely leaving savings on the table.
Consider shopping around for new homeowners insurance every year or every two years to see if you can save money by switch companies. To do this, get homeowners insurance quotes from at least three different companies. Cast a wide net that encompasses both traditional insurance companies and new online providers like Lemonade. The more quotes that you get, the more likely you are to find cheap homeowners insurance.
When comparing quotes, compare the price of each policy, policy options and coverage, and the reputability of the company. While price is very important, you don’t want to sacrifice valuable coverage or trustworthiness of a company. It could cost you money in the long run if the company denies your claim or gives you sub-par customer service. You need to find a company that offers the best value.
You can visit Clearsurance’s home insurance rankings page specific to your state to see the best and cheapest homeowners insurance in your zip code based on consumer reviews. From here, you can also read home insurance company reviews written by policyholders to learn about their experiences with the companies.
Insurance may be one of your biggest budget items These 9 tips can help you save a significant amount of money on your homeowners insurance premium. They may take a bit of work upfront, but they will be extremely beneficial in the long run.