Top 10 Ways to Lower Homeowners Insurance Costs

Keeping your home safe can lower insurance costs.
It seems as though with some insurance providers, premiums for homeowners insurance policies are constantly on the rise. If there is an increase in home insurance claims in your area, due to whatever reason, your premiums have most likely up—even if you have not submitted any claims. To offset these increases, you might have to take some necessary steps to lower your premium.
To help, here are our top 10 ways you can save money on your homeowners policy:

1. Raise Your Deductible –In most cases, the homeowner never files an insurance claim. Select a higher deductible and reduce your monthly premium. To prepare for an unexpected event, establish an “in case of emergency” savings. Therefore, if a fire or natural disaster causes damage to your property, you’ll have some funds to help pay the deductible. Ask your agent what the various deductibles offered are, and the premium cost for each one

2. Consolidation - Consolidate your homeowners insurance policy with your other existing insurance carriers. In many cases, if you use the same agent or insurance company for all of your insurances needs you get multi-policy holder discounts.

3. Stay Put – If you’ve kept your coverage with a company for several years, you may receive special consideration. Several insurers will reduce their premiums by 5% after you’ve been with them for three to five years, and some companies will discount you as much as 10% after six years. Especially in today’s tight insurance market, your current vendor is more likely to give you a good price.

4. Insure your Home, not the Land – Although your home and its contents are at risk from fire, theft, windstorms and other perils, the land your house sits on is not. Don’t include the value of the land in deciding how much homeowners insurance you need to buy. Talk to your insurance agent about elimination of this protection. Unless you have good reason to anticipate a sinkhole or other unusual geological event occurring in your backyard, land coverage is pointless

5. Price Check – Price compare rates offered to you from several companies each time your policy comes up for renewal. Rates given on insurance can vary based on the company’s situation, and your situation at the time that you apply. Just because one insurance company is cheaper this year, does not mean their rates are always the lowest.

6. Protection Features – The more protection your home features, the better. For example, some home owner’s insurance polices give discounted rates if you install a home alarm system, deadbolts on your doors, or a new roof. Homeowners with plentiful protection receive lower quotes on their policy. To pay a smaller premium, install fire detectors and extinguishers on each level of the home.

7. Senior Discounts – Insurance companies have found that retired people stay at home more, therefore able to keep watch on the property more than working people. Older people also have more time for maintaining their homes. If you’re at least 55 years old and retired, you might qualify for a discount of as much as 10%.

8. Check Up – You want your policy to accurately reflect the value of your home and belongings. If you review your policy every year, you will be able to make the necessary adjustments.

9. Group Rate – Look into discounts for group coverage. Alumni and business associations often work out insurance deals with an insurance company, which includes a discount for association members. Ask your association’s director about any such deals.

10. Credit – Check your credit rating. Insurance companies frequently check your credit score to determine how much they should charge you for insurance. Consider it one more reason to stay on top of your credit. Make sure your credit is in good shape, and if it’s not, seek out companies that do not run credit checks.