It’s no secret. Everyone wants good home insurance for an even better price. But there are many factors taken into consideration when calculating the price.
So don’t be too bummed when you learn that your best friend is paying less than you are for home insurance. Your home might have special conditions that are raising the price. And you might be surprised to know that there are probably a couple of ways that you can lower it.
So if you’re on the lookout for cheap home insurance but don’t know where to begin, then keep reading. There are several homeowner insurance tips that can help you. And we’ve put a list together of 8 tips on how to lower home insurance!
1. Ask About Discounts
Just like receiving discounts on your auto policy, lots of companies offer discounts on home insurance policies. If you’ve been with the same company for several years, then you may be eligible to receive a discount for being a loyal member. Being over a certain age could also lower your rates.
When it comes to the actual home, a smoke-free environment and not filing too many claims are other ways to access cheap home insurance. If you already have an existing policy, then consider asking your insurance agent about discounts available to you.
2. Bundle Your Policies
If your home isn’t the only thing you need to be covered by insurance, then it’s worth looking into a bundle deal. When bundling your policies together like homeowner’s insurance and auto insurance, you could come out with some great savings. Ask your insurance company about what bundling insurance policies can do for you.
But be sure to ask before canceling any policies with other companies. Not every company covers homes and cars. And not every company offers bundle deals.
Although, it’s definitely worth a shot to ask. And remember to ask multiple companies as some may be cheaper than others.
3. Raise Your Deductible
If you already know how to get homeowners insurance, then you know that along with selecting a policy comes selecting a deductible. But did you know that opting for a higher deductible could save you money each month? Going with a higher deductible means lower monthly payments.
So this is a great way to lower your insurance cost. However, be sure not to go with a deductible that isn’t realistic to your individual situation. When a disaster strikes, you’ll want to have enough money to pay the deductible.
Consider a $1,000 deductible as it can save you money throughout the year and is still doable when needed. You can also put money aside each month that will go towards the deductible to ensure you can cover it.
4. Create A Safer Home
Creating a safer home lowers insurance payments. Keep in mind the area that you live in and the natural disasters that are common to that area. For example, prepare for hurricanes, tornados, earthquakes, and others if you live in areas susceptible to these weather conditions.
You can do this by raising your home and utilities off of ground level if in a flood zone, installing storm shutters, adding components to help withstand earthquakes, and many other.
Install security system, fire alarms, sprinkler systems, and update heating, old wiring, and plumbing to lower your risk of fire and water damage. Avoid risk when you can and your insurance company will consider you a low-risk customer. In return, you’ll receive a lower price.
5. Eliminate Unnecessary Coverage
You don’t want to be paying for something that you don’t need. For instance, if you live in an area that is prone to tornados, then having tornado coverage is essential. However, if you live in an area that has no threat of being hit with a tornado, then you shouldn’t be paying for that coverage.
Know the ins and outs of your policy to ensure that you’re not paying for something that you honestly don’t need. Go through your policy and eliminate unnecessary coverage. But don’t remove anything from your policy that you might need down the road.
Some policies cover the land that your property is on. But more times than not, this is an unnecessary added expensive. Also look into pet, jewelry, swimming pool, and other types of coverage that you may have needed in the past, but no longer do.
6. Maintain A Good Credit Score
As with any purchase, loan, or insurance policy, your credit score plays a significant role in your rate. To get the best price on home insurance, you need to have a good credit score. If you haven’t already purchased home insurance, then consider bringing your credit score up as much as possible before needing to find a policy.
The better your credit, the better your monthly price. To reach and maintain good credit, pay all your bills on time, don’t take out more credit than you need, and keep up good credit habits. And remember to check your credit score monthly!
7. Remove Old Structures From Your Property
If you have any old structures on your property such as an old shed that you barely use, then remove it from your property and watch your rates go down. Most policies charge more for having these structures on your property. Look into your policy terms or call your insurance agent to ask about older structures.
If you’re paying more on your premium because of an older structure that you no longer use, then it might be time to have it removed.
8. Shop Around Annually
Always shop around each year. Every year when your policy agreement comes to an end, it’s important to shop around. See what other companies have to offer you.
You might find something cheaper with another company. Or, perhaps a different company might offer you a similar rate but have discount options that your current policy does not. You can see more here for some of the best homeowners insurance.
But be wary of policies that seem too good to be true. More times than not, they are. Some policies may seem like you’re getting a great price but it’s because it’s only a 6-month premium rather than a yearly one.
Always do your research!
Find Cheap Home Insurance Without The Stress
There are several ways to get your hands on cheap home insurance. And you don’t need to feel stressed to do it. Most times, you can lower your cost by adjusting a policy that you already have or making adjustments to your home.
And if you enjoyed reading about these 8 tips for lower home insurance cost, then you’ll also enjoy reading about 5 ways to save on your energy bills throughout the winter. Click here to learn more!