Homeowners insurance protects your home and its contents. So, it is no surprise that the cost of home insurance is a price that most homeowners are more than happy to pay. Homeowner insurance premiums have increased significantly over the last ten years, though. Yet, many people do not think about how they might reduce the cost of their home insurance. Here are ten tips that could save you money on homeowners insurance premiums.
1. Ask for a Discount
When your home insurance comes up for renewal, it would be best not to merely accept your existing insurer’s first quote as being the best you could get. Insurance companies don’t always automatically offer you the discounts to which you are entitled. So, talk to your insurance company or agent and ask if there any discounts available. When it comes to insurance, you don’t get it if you don’t ask!
2. Increase Your Deductible
The deductible is the out-of-pocket amount you must pay towards repairing or replacing items if you need to claim your insurance. A relatively small increase in the detectable could significantly decrease your premiums. So, consider if you are willing to accept a slightly higher risk by increasing the amount you pay before you make a claim. Increasing your deductible would cost you more if you need to claim, but you could save even more in reduced premiums in the long-term.
3. Consolidate All Your Policies
If you have all your insurance policies with one provider, you will get larger discounts. If you have car insurance with one provider and home insurance with another, consider switching all your policies to one insurance company. Having all your insurance needs covered by one supplier is also more convenient because you have only one point of contact for all your insurance policies.
4. Pay Annually
Paying your insurance premiums in monthly payments is a form of financing, so you pay more to spread the payment amount in this way. If you can afford to pay your homeowners insurance annually in advance, doing so should reduce the total premium.
5. Only Claim When Necessary
Think before you make any small claims on your home insurance. If you make too many claims, your premiums will increase. You have to pay the deductible amount yourself anyway, so the small amount that you would be able to claim may not be worth the premium increase. The number of claims you make affects how much you pay more than each claim’s value.
6. Clean Up Your Credit Score
Insurance companies use your credit rating as a part of their premium calculation. So, paying your bills on time could reduce your home insurance premiums. Your credit score is only one of many factors that insurance companies consider. However, credit rating is one of the significant factors used in calculating insurance premiums.
7. Install Safety and Security Equipment
Speak with your insurer or insurance agents about how you could reduce your premiums by installing security and safety and equipment in your home. You can usually get discounts on your home insurance by installing security systems, smoke alarms, and flood protection devices. In some cases, the saving could be as much as 20%.
8. Tell Your Insurer if You Upgrade Your Home
If you have made any upgrades to your home, this may also reduce your home insurance premiums. For example, installing a new roof or a home sprinkler system reduces the insurer’s risk and might reduce your premiums. But, of course, your insurer doesn’t know that the risk has reduced unless you tell them about your upgrades.
9. Don’t Over Insure
It is worth periodically reviewing your insurance needs to see if you still need the same coverage. If the kids have left home and you have retired, for example, you may no longer have so many expensive items in your home. Some insurers charge higher premiums for people who smoke, too. So, if you have quit smoking, that’s another thing that you need to tell your insurer.
10. Get Quotes from an Independent Insurance Broker
It would be best not to renew your home insurance without first getting quotes from other insurers, or you can talk to an independent insurance broker who will be able to get the best deal for you. Take a little bit of time comparing rates from several providers. You will likely find that you can reduce your insurance premiums.
Homeowners insurance is something that people tend to renew without thinking. However, as you can see from the above, there are many ways that you could save on your home insurance. The best advice is to talk to your insurance company or insurance agent and ask about the discounts you might be eligible to claim, and shop around to see if you could save money by switching insurers.
