Homeowners insurance is an expense. However, good insurance should protect you against disasters and financial issues. That said, since you’re paying for something that you hope to never use, don’t make the mistake of paying for more than what you have to.
Fortunately, there are several ways to get the coverage you need at the price you can afford. In general, reliable insurance companies like OpenHouse Home Insurance consider various factors for your premiums. Some factors such as the location and age of your home are beyond your control, however, most are up to you.
Here are some surefire ways to save money on your homeowner’s insurance.
1. Increase Your Deductible
The deductible is the amount of money you pay if you need to make a claim. By raising your insurance deductible, you can quickly reduce your premiums.
If you can pay above the minimum deductible, for instance, if your insurance provider set a USD$500, choosing to pay up to USD$1,000 can help you significantly reduce the cost of your insurance.
Take note that if you live in a risky area, for instance, prone to natural disaster or high criminal activities, your insurance provider may require a separate deductible for these specific damages. Consider this when deciding to raise your standard deductible.
2. Boost Your Credit Score
Your credit score has a significant impact on different aspects, including your Homeowners Insurance premium. This is because most insurance providers use a credit-based insurance score to decide your rates.
If an insurance provider sees you have a low credit score, you may have to pay higher premiums. In contrast, a higher credit score can help reduce your premiums.
So, take the necessary steps to increase your credit score such as reducing credit card balances or paying bills on time.
3. Change Coverage
Homeowners’ insurance typically consists of liability insurance, structure insurance, personal property insurance, and extra living expenses coverage.
In general, you can choose different levels and amounts for each type of coverage. Take note, that coverage that pays more in them during a claim will have a higher premium. For instance, personal property insurance that covers replacing damaged possessions with brand-new items will cost more than covering only their current value.
Carefully check each coverage and look for further adjustments to save money.
4. Opt For Bundles
Most retailers offer bundled items with good discounts compared to buying individual products. This practice is also provided by most insurance companies. Most insurers can offer significant discounts of up to 15% if you buy more than one policy from them.
For instance, you can bundle your homeowner’s insurance and auto policies and gain significant savings. Another benefit of opting for the same provider is that you have your policies in one place for easier and more convenient payment.
5. Eliminate The High-Risk Features
Those seemingly harmless, nice additions to your home, such as swimming pools, wells, trampolines, or treehouses may be the reason you have higher insurance premiums.
Insurance providers call these features ‘attractive nuisance,’ which are anything that poses danger to kids but could tempt them to play on. If a kid gets injured while doing so, you’ll be held legally responsible. Since insurance providers consider this a liability risk, removing these items can save on your insurance premiums.
That said, you can’t easily get rid of certain features like swimming pools. In this case, an effort to make it safer, for instance, adding pool covers or installing a fence, may help reduce its risk and potentially lower your premiums.
6. Do Some Home Improvements
Doing some home improvements not only helps in boosting your home’s value but can also make you eligible for insurance savings without even realizing it.
For instance, adding features that make your house more resistant to damage such as impact-resistant roofing and storm shutters can help lower your premiums. You can also earn some discount by upgrading your outdated electrical and plumbing systems.
After making some home improvements, you can request a new home inspection to evaluate these improvements and maximize potential discounts from your insurance provider.
7. Compare Prices
There are numerous companies offering homeowners insurance–from traditional insurance companies to online-only firms. Doing your research and browsing for options can help you find the most competitively-priced policies.
Talk to an insurance agent and determine what kind of coverage you need. Make sure to get quotes from various providers and compare.
Take Away
Your homeowner’s insurance premium varies by hundreds of dollars, depending on several factors, and could end up costing more money than it should. But with better awareness, information, and the tips mentioned above, you can position yourself to find the best rates and save more on your homeowner’s insurance while adequately protecting your home and assets.