Homeowners insurance is one of the expenses homeowners need to budget for every month. This insurance is costly and premiums increase every year. While you can’t avoid this fee, you can, however, find ways to lower your insurance premiums.
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Here are 8 ways to get the coverage you need at a price you can afford.
Ask About Multi-Policy Discounts
When you bundle your homeowners’ insurance with your auto insurance you can save anywhere from 5 to 15 percent off one or both policies.
If you have insurance with multiple companies, get a quote from each one and see how much you can save by switching one policy.
Stay Loyal To Your Insurance Company
Most insurance companies offer a loyal customer discount. Staying with the same provider for at least 3 years can yield a 5 percent savings while a long-term customer of 6 or more years can see a 10 percent drop in their premium.
Don’t Over-Insure Your Property
Many people have a hard time determining how much coverage they actually need. Make sure you have enough to cover the cost of rebuilding your home from scratch, but don’t ensure to the market value of the property and don’t account for the land it’s sitting on.
If your home is a total loss, the land on it is still yours, so you’ll only need to be covered for the cost of rebuilding your home.
Ask About Additional Discounts
If you live in a home with certain upgrades or haven’t filed a claim in a number of years, you may qualify for a discount on your insurance policy.
Make sure you mention that you don’t allow smoking in your home or that you’re at home for a significant portion of the day as these things can add up to discounts.
Raise Your Deductible
Increasing your deductible puts more of the liability on your own shoulders, but it will also help lower your rates.
You can save 30 percent by simply opting for a $1000 deductible rather than a $250 one. Ask your provider what the highest possible deduction is, which could be $2,500.
Just be sure to keep an emergency fund to cover the difference in deductible and enjoy the savings year after year.
Keep Good Credit
Your credit score may have an impact on your insurance costs. Premiums can be higher for applicants that have poor credit scores, so it’s important to maintain your score or work to improve it.
If there has been a large, positive change in your credit rating, it may be worth a call to the insurance company for a policy review.
You can probably find a more affordable policy by just making a few phone calls. You can use an online quote system if you’d prefer but they may not always be so accurate.
When getting a quote, be sure to ask about what discounts they offer because you may qualify for a few.
Install An Alarm System
Having a safe and secure home can give you an additional discount on your insurance policy. If you install an alarm system in your home you can save another 5 percent off your premium. The better your system the bigger discount you can land.
These tips for cutting your homeowners’ policy costs can really add up. Follow each one and you can end up slashing your premium in half.