Homeowners insurance provides coverage against loss or damages to your residence. Typically, it will also cover assets in your home and any accidents that take place on your property. While the cost of home insurance will vary significantly based on how much coverage you opt for and where you stay, you can expect to pay an average premium of $1,200. If you live in a flood-prone area, you can expect to pay almost 3 times more for your policy. On the other hand, if you reside in a place that has a low risk of floods and storms, you can expect to pay a significantly lower amount.
That said, regardless of how much you pay, there are always ways to reduce the premium. Here are a few tips to help you save money on homeowners insurance:
Opt for A High Deductible
When you raise a claim, you’ll need to pay a certain deductible. The deductible is what you pay towards the claim, after which the insurer will pay the balance. Increasing the deductible will reduce your premium. But, remember that in the event of a claim, you’ll need to shoulder a higher financial loss.
Improve Your Credit Score
Most home insurance providers predict the likelihood of policy buyers raising claims in the future by using the credit-based insurance score, which is a variation of your credit score. Given this, if you have a poor credit score (under 630), it is best to take steps to improve it.
Buy Multiple Policies from The Same Insurer
If you buy multiple policies like auto insurance, home insurance, health insurance, etc., from the same insurance provider, you’ll likely get a better rate on your policies.
Compare Quotes
Premium rates can vary from one insurance provider to the next, so it helps to shop around and compare premium quotes.
Ask for Discounts
Insurance companies offer several discounts, and you may be eligible for some of these. So, make sure to provide your details to the insurance company and ask if you qualify for any discounts.
Make Your Home More Secure
Renovating your house can increase your premium, especially if the renovation will cause the value of the house to increase. That said, you can renovate or upgrade your house to make it more secure and damage-proof. Doing this will likely help you negotiate for a lower premium.
Review Your Policy Coverage Every Year
Ensure that you review the policy coverage and the premium you pay for the policy every year. If you no longer want to cover certain expensive assets in your home, you could remove them from the coverage and get a lower premium.
Homeowners insurance is a necessity that you shouldn’t skimp on. Given that this is a recurring cost that you’ll need to pay for as long as you own a house, it is best to look at ways to trim the cost, while also staying adequately protected.