Tips for Reducing Your Homeowner’s Insurance

As a homeowner, you likely have homeowner’s insurance. In fact, it is required by mortgage companies as a condition of your mortgage. If you do not have a mortgage, you do not need to have insurance. However, you should always have it because you can never predict when a disaster will strike. No insurance means that you can be at a complete loss with no means of recovering any damages. That is why you have homeowner’s insurance. It protects you and your home. It can also be a big expense in your monthly budget, but you can’t afford to not have it either. Thankfully, you are not stuck paying whatever insurance premiums the insurance company gives you. There are ways you can reduce your insurance premiums. Some of the things you can do include:

• Invest in Security: Your insurance provider will provide you with small discounts based on the safety and security of your home. Having smoke and carbon monoxide detectors, burglar alarms, and deadbolt locks will give you a discount of about 5%. Investing in security cameras and a security system that alerts the local authorities may qualify you for even more discounts. It is important to note that not all systems will qualify. So, check with your insurance provider to make sure the system you want to install qualifies for a discount.

• Raise Your Deductible: The deductible is the amount of money you pay towards a loss before the insurance money will kick in to pay your claim. The more your deductible is, the lower your insurance premiums will be.

• Bundle Policies: Insurance companies will offer discounts for bundling multiple policies together such as life, auto, and homeowner’s insurance. If you have or need all these policies, it may be worth bundling all these policies together under the same insurance provider.

• Maintain a Good Credit Score: Having a solid credit history and good credit score will help reduce the cost of insurance policies. Insurance companies are increasingly using credit history and scores as a factor when pricing out your homeowner’s insurance policy. So, be sure to pay your bills on time, don’t obtain more credit than you need, and keep credit card balances low.

• Shop Around: Each insurance company will provide you with a slightly different insurance policy and premium. Be sure to shop around and get quotes from multiple home insurance companies to look for the one with the best rates and the coverage that you need.

• Improve Disaster Resistance: The more resistant your home is to storm, disaster, and pest damage, the lower your insurance premiums will be. Investing in better roof materials, installing storm shutters, upgrading electrical systems, and trimming overhanging tree branches help keep your home safe from potential damage. Doing these things can reduce your insurance costs.

• Stay with the Same Insurer: The longer you stay with the same insurance provider, the deeper the loyalty discount you may receive. Typically, all insurance companies offer some loyalty perk, but the amount of the discount varies.