Finding ways to decrease the cost of your homeowner’s insurance can be easy if you know how to approach it. The main thing to remember is that the house and contents you want to be covered are unique to you. Nobody else will have the exact same needs so take the time to match the perfect policy for your specific requirements.
It is important to go into this process with your eyes open and your mind full of information. You need to have an updated budget before you do anything because knowing how much you can afford to pay for premiums is imperative. It will also show you how much cash you will have left over at the end of the month, which could help you pay off some basic expenses if a claim must be filed.
With that being said, let’s jump in and discuss 12 ways to lower your homeowner’s insurance costs. 12 ways that are easy to do and will make a noticeable impact.
- Credit Report – Anything and everything financial in nature will require you to have a good credit score. Obviously, having a great score is better, so take the time to review your report and fix the things that need to be fixed.
- Same Insurer – If you already have a good insurer, it may be beneficial to reach out to them and discuss getting a no-claims discount. If not, ask them about other discounts given to customers that stay with the company. It never hurts to ask.
- Bundle – One of the best ways to get a lower premium on your home and contents insurance is to bundle all your insurance policies into one big umbrella policy. This will also save you money on every policy you place into the bundle, giving more significant savings all the way around.
- Compare – Even if you have been with a company for a long time, it is always a good idea to compare insurance for home and contents. If a company offers you a better deal, ask them about the bundle of policies you want to bring to see if it is truly a saving.
- Cost Of Replacement – You want to review the policy, and every time it is up for renewal, it is a good idea to have an expert come in and access the home. You do not need the home’s current market value but the replacement cost. One big thing here is to ensure the policy does not include the land, which can raise the premium prices substantially.
- Coverage Amounts – Check through the contract and see what is being covered. If you have removed some things from the home or no longer want them insured, you can lower the coverage amount of the contents sections. Plus, if you read through the contract, you may find something you are being charged for but don’t need.
- Security – Add some state-of-the-art security system upgrades and ask for a discount.
- Upgrades – If you have completed any enhancements that can be tax deductible, such as solar panels, it is worth checking to see if the insurance carrier will also give you a discount.
- Length Of Policy – The longer the policy is set to be in place, the lower your premiums will be.
- Pay Full Premium – Depending upon your insurance provider, they will give you options to pay. Always pay the longest amount of time because it will provide you with a discount and lock the price in for that amount of time.
- No Claims – Only file a claim if absolutely necessary. You never want to file for something that you could fix yourself because your premiums will go up every time you do.
- Deductibles – The higher your deductible is, the lower your premiums will be. Remember that the higher it is, the more money you will have to pay out of your pocket.
Saving on your homeowner’s insurance coverage does not have to be a hair-pulling experience. Take your time, understand what you need and how much coverage you need, and never settle for anything less. It may seem like a great idea to cut the coverage to save yourself on the costs of the premiums, but that can come around and haunt you if something should ever happen that requires a claim to be filed.