Helpful Tips to Lowering the Cost of Your Homeowner’s Insurance

It is essential that every homeowner purchase homeowner’s insurance.  Homeowner’s insurance protects you from damages to your home.  While homeowner’s insurance is important you do not have to pay an arm and a leg for it.  Below are some helpful tips to lowering the costs of your insurance.    

1.  Considerations When Buying a Home can Save You Money on Insurance

Some insurance companies give discounts on their policies depending on features of the home.  For example, you may pay less if your house is close to a fire hydrant, has an electrical system less than 10 years old, or a plumbing system less than 10 years old.  When looking for a home it may pay off later to keep things like this in mind.     

2.  Maintain a High Credit Score

More and more insurance companies are taking credit scores into account when deciding what to price a policy at.  This is just another reason to keep your credit score as high as possible.  The higher the credit score the lower price you will be offered for your policy.

3.  Shop Around and Ask About Discounts

Ask friends, family, co-workers, your real estate agent, and your neighbors for recommendations of a good insurance company.  Do your research by checking with the Better Business Bureau and the National Association of Insurance Commissioners to find out the reputation of the companies.  Most importantly make sure you get at least three quotes before choosing which company to get your policy with.  Make sure the quotes are comparable and show the same level of coverage.

Many insurance companies offer discounts for different things.  When getting a quote make sure you ask what additional discounts you may qualify for and how much the discounts are worth.  For example, some companies offer discounts for where you work or if a retired person is at home more during the day.  When comparing your quotes you will want to take the amount of these additional discounts into consideration.  

4.  Use One Insurance Company for All Your Policies

Most insurance companies offer a discount if you buy both your home and auto policies from them.  This can save you as much as 15% off your premium.  When comparing quotes from different companies you need to account for any money that would be saved by using one company for all your policies.

5.  Paying What is Needed and Nothing More

When deciding how much your homeowner’s insurance policy should cover keep in mind that the land your house sits on does not need coverage.  That land is not at risk from fire, theft, and other potential hazards.  Make sure you are paying only to cover the value of your home not the land.

6.  Consider Higher Deductible’s

Another way to lower the cost of your insurance is to raise the cost of your deductibles.  A deductible is the amount you pay toward a loss before the insurance company starts paying the claim.  You should only consider raising your deductible if you know that you have the money to cover it if need be.  If you do have the money raising your deductible will lower your premiums. 

7.  Improved Security and Home Disaster Resistance

Many insurance companies will offer discounts if your home has improved security and/or is made more disaster resistance.  Things like smoke detectors, dead-bolt locks, and a security system can all yield more discounts.  Some insurance companies will also offer discounts for things like storm shutters and stronger roofing materials.  Be sure to ask your insurance companies what discounts they may offer for improved security and/or disaster resistance improvements.

 8.  Company Loyalty

Some companies offer discounts for company loyalty.  If you keep your insurance policy with the same company for many years it can sometimes yield a discount.  Be sure to ask your company if you are entitled to a discount after you have been with them for a few years.

9.  Review Your Policy Often

It is important to review your policy at least once a year.  Not only should you review your policy and coverage you should take an inventory of any possessions your policy covers.  You want to make sure any new valuable possessions are being covered and take any off that no longer need covering. 

Using these tips should help you obtain the lowest price possible for your homeowner’s insurance policy.