13 Ways to Save On Homeowners Insurance

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Home insurance premiums have been on the rise and will likely continue increasing.  The reason for this rise is tied directly to rising lumber prices.  Put simply, it costs more to rebuild a house.  And because of this, insurance premiums are increasing.  Insurance companies know their risk is growing as costs increase, so they, in turn, pass that risk onto consumers with higher premiums.  In order to alleviate this extra cost, there are several ways you can save on homeowners insurance. 

Raise Your Deductible

An easy way to reduce your homeowners premium is simply to raise your deductible.  Instead of having a $500 deductible, consider raising it to $2,000.  While doing this will reduce your premium, keep in mind that you will also have to pay more if a claim were to occur.

Forget About Land

When determining the amount of coverage, people often make the mistake of including their land.  Let's say you buy a home for $250,000.  The home itself might be $225,000 and the property $25,000.  The average person would just assume they need coverage for $250,000, but you really just need coverage for your home cost of $225,000.  Removing the value of your land when getting homeowners insurance will help reduce your premiums.

Bundle And Save

Insurance companies provide discounts when you combine auto and home with them.  If you have different insurance companies for your auto and home policies, you might be able to save further by bundling with either one.

Be Claim-Free

It might be tempting to file a claim whenever something happens to your home, but there are times where it may be in your best interest to pay for it out-of-pocket.  It can be beneficial to not report an incident to your insurance company because most companies provide discounts if you are claim-free.  So if you have an inexpensive claim that the insurance company wouldn't pay much for, then leaving it unreported could lead to better savings.  If you need help deciding on the best route, you can call us for advice.

Beef Up Security

Not only does security help protect your home, it also brings reduced premiums.  Since homes with security don't get burglarized as much, it means fewer claims and better pricing.  Consider getting an alarm, as the savings could pay for itself.  Double down with a system that calls your local police station and you should see even more discounted rates.

Prepare Against Fires

Fires can be a costly claim for insurance companies to cover.  Any preventative measures can lead to savings on your homeowners policy.  For example, you could have smoke alarms or a sprinkler system installed in your house.  If there are no fire hydrants nearby, you could ask your city to add a new one closer to your home.  Think of a central location for your neighborhood for getting the most buy-in from neighbors.

Bring In Reinforcements

Storms create more claims than anything else.  Hail can ruin a roof.  Wind might tear off siding or possibly knock over sections of your fence.  It's hard to avoid the effects of a storm, but there are some things which can help protect your home while also saving on your premiums.  For example, while these are not cheap options, you can get storm shutters or a new roof.

Update Plumbing and Electric

Having outdated plumbing and electric will lead to increased insurance costs.  It's riskier for the insurance company to cover a home which could more easily have water leaks and fires.  Depending on how outdated it is, you may even be denied coverage!  Updating plumbing and electric can lead to savings.  More importantly, it can protect your home and those inside it!

Remove Liabilities

Insurance is all about risk.  And fortunately, fun hobbies can be risky.  Activities like jumping on a trampoline, playing in a tree house, and having a pool will likely mean paying more for insurance.  If you have these already, and want to reduce your insurance, it might be time to get rid of that tree house, trampoline, or pool.

Retire Early

We all long for retirement when we can rest from our years and years of work.  And if getting to rest isn't enough, we also get discounted insurance premiums.  Since retired people tend to be home more, and thus able to make sure the house is looked after properly, insurance companies provide reduced rates for homeowners insurance.  You could see as high as a 30% reduction in premiums once you retire.  This could give you all the more reason to retire early and save on your policy!

Build Good Credit

Most states allow insurance companies to provide better rates for those with good credit.  Great credit correlates with better home care and fewer claims.  So if your credit needs improving, get it boosted with smart practices, and then reach out for a new quote after it rises significantly.

Ask About Random Discounts

Beyond the normal ways to save up, there’s also a slew of random discounts insurance companies may offer.  Some of these include:

  • Automatic Payments

  • Paperless Billing

  • Profession (Teacher, Firefighter)

  • Non-smoker

Schedule Annual Reviews!

Insurance rates are always changing for a variety of reasons.  The best thing is to schedule annual reviews for seeing where you may be able to save and qualify for discounts.  You can schedule a review with us today!