Every Penny Counts: 7 Tips for Lowering the Cost of Home Insurance Premiums

Every Penny Counts: 7 Tips for Lowering the Cost of Home Insurance Premiums

Do you currently have homeowners insurance? If so, you’re part of the vast majority of Americans, 95 percent, who are in the same boat.

Are you happy with the amount you’re paying for your insurance, though?

It’s no secret that home insurance can be quite expensive. But, luckily, there are lots of strategies you can implement to bring the price down.

Listed below are seven great tips that will help you to lower the cost of home insurance.

Benefits of Having Home Insurance

If you’re not happy with the cost of your home insurance premiums, you might have found yourself asking why you’re paying for it at all.

There are a number of benefits that come with investing in a good homeowners insurance policy, including the following:

  • Your investment is protected and you’ll have money for repairs should something go wrong
  • You’ll have less stress to deal with should something go wrong
  • You’ll be protected legally in the event that someone is injured while on your property
  • You’ll be able to replace stolen items more easily

Clearly, there are lots of reasons to keep your home insurance policy up to date.

Seven Ways to Lower the Cost of Home Insurance

Okay, you’re convinced that home insurance is important. If you want to reduce the cost of your home insurance premiums, these tips can help:

1. Compare Rates from Multiple Providers

One of the first steps you can take to save money on your home insurance premiums is to compare prices from multiple insurance providers.

Don’t just go with the first provider you talk to, either.

Shop around and pay careful attention to the differences between similarly priced plans. Make sure you choose the plan that offers both reasonable rates and reasonable coverages.

2. Increase Your Deductible

Increasing your deductible is another strategy you can use to lower the cost of your home insurance.

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The catch, of course, is that you will have to pay more out-of-pocket for repairs in the event that something goes wrong with your home.

If you’re willing to do this, though, and just want to lower your monthly payments, raising the deductible is a good approach to take.

3. Consider Bundling Your Policies

If possible, try to bundle your home insurance with your car insurance.

Many insurance providers will offer you a significant discount if you purchase multiple policies through them.

Reach out to your provider today and ask them what kind of deal they can give you if you switch to one of their home insurance policies.

4. Ask for Discounts

Sometimes, in order to save money on your home insurance, all you have to do is ask.

Many insurance providers have discounts available, but they don’t advertise them. You might qualify for a discount if you and your home meet any of the following criteria:

  • You have equipped your home with smoke detectors and/or a sprinkler system
  • It’s been a certain number of years since you filed a claim with your insurance provider
  • You do not smoke inside your home
  • You are older than a certain age

All of these factors can lead to lower insurance premiums. Remember, ask and ye shall receive.

5. Maintain a High Credit Score

The higher your credit score, the more likely you are to get better insurance premiums. This goes for auto insurance as well as home insurance.

If your credit score is subpar at the moment, start taking steps to raise it (and maintain it once it’s in a good place).

Some steps you can take to raise your credit score include:

  • Paying your bills on time
  • Paying down your debt
  • Keeping your credit utilization rate low
  • Correcting errors on your credit report

It’s also important to avoid taking out too many loans or opening lots of new credit accounts all at one time.

6. Improve Your Security

In addition to saving money by installing sprinkler systems and fire alarms, you can also save money by improving your home’s security.

If you’re looking for a discount on your home insurance, consider investing in a good security system.

There are other steps you can take to further improve your security. Installing storm shutters is a good first step, as is installing deadbolt locks for your doors and windows.

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The more you do to avoid accidents and burglary claims, the less incentive your insurer has to increase your rates when it’s time to renew your home insurance policy.

7. Know the Value of Your Belongings

Finally, if it’s been a while since you first signed up for your home insurance policy, you might want to reevaluate your belongings and consider the amount of coverage you need.

For example, if you no longer have some of the expensive jewelry you had when you signed up for your policy, you might not need as much coverage as you once did.

How to Choose the Right Home Insurance Policy

If you’re currently shopping around and comparing rates for home insurance policies, here are some other tips that can help you choose the right plan:

  • Learn the company rating
  • Don’t forget to compare deductibles
  • Answer questions honestly to get accurate quotes
  • Learn your home’s replacement value (don’t just go off of the market value)
  • Ask for a claim’s history from the person who sold you your home
  • Understand what each policy covers
  • Consider your disaster risk

Don’t forget that regular home insurance policies don’t cover disasters like earthquakes and floods. You’ll have to buy a separate policy if you want this coverage. You can click here for more information about these policies.

Looking for More Money-Saving Strategies?

As you can see, there are lots of things you can do to lower the cost of home insurance. Even just making some simple changes can have a significant impact on your insurance premiums.

Are you looking for more strategies you can use to save money?

Whether you’re trying to cut the cost of your insurance premiums or save money to pay for a home renovation, we’ve got tips for you.

Check out the finances section of our site today for all kinds of helpful information.

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