While you have little control over some factors, such as your home’s location or age, there are other ways to save money on your home insurance premiums.
“By focusing on areas such as deductible amounts and liability limits while keeping a detailed inventory list, these changes can provide substantial savings each year while still protecting yourself against potential financial losses because of unforeseen events beyond one’s control,” said John Espenschied, owner of Insurance Brokers Group.
- Bundle policies: One of the best ways to save money on your homeowners insurance policy is to bundle with another policy from the same carrier, typically car insurance. Bundling can save you anywhere from 5% to 25% on your premiums. If you already have an auto insurance policy and cost is an important factor for you, consider purchasing your home insurance policy with the same company.
- Look for discounts: Most providers offer several other insurance discounts. Some are easier to qualify for, like outfitting your home with security systems or enrolling in automatic payments, while others are more difficult for some to attain, like having a new home or recently purchasing one.
- Make renovations: Although this can be costly up front, insurers will see an updated and repaired home as a lower risk to insure and offer lower premiums. Conversely, you may find yourself paying extra if your home has an older roof or outdated systems.
- Maintain good credit: Although you likely won’t have time to improve your credit when shopping for home insurance, it’s a great thing to keep in mind over time. By gradually improving or maintaining your credit, you may see a discount on your home insurance premiums at renewal.
- Avoid small claims: Filing a home insurance claim, even a small one, is likely to increase your home insurance premiums at your policy’s renewal date. Consider whether reporting a claim is worth this uptick in cost. For example, if a covered loss will cost less than your deductible to replace or repair or you filed a claim within the past few years, you may not want to alert your home insurance provider.
- Compare providers. Not all home insurers calculate risk the same way. If you’re about to purchase home insurance or you already have home insurance but want to save money on your premiums, we recommend getting quotes from several providers to compare prices. In addition to price, compare coverage options, customer reviews and third-party ratings.
