Are you wondering how to reduce homeowners insurance? The price you pay for your home insurance can vary by thousands of dollars, but it depends on the insurance company you purchase your policy from.
Tips to Reduce Homeowners Insurance
There are many home insurance tips and tricks that you can follow if you’re interested in reducing the cost of the premium you pay.
Shop Around
It may take a little time, but you can save a ton of money just by shopping around and comparing rates. Check with your friends or contact your state insurance department. Resources are available that can supply you with information to assist you in choosing an insurer in your state, including complaints. States make this information available at typical rates that are charged by major insurers.
Increase the Deductible
Deductibles are the amount of money you have to pay for a loss prior to the insurance company paying a claim. The higher your deductible is, the more money you can save on your premiums. Many insurance companies recommend a deductible of at least $500. If you can afford to increase your deductible to at least $1,000, you can save at least 25%. Moreover, if you reside in a disaster-prone area, your insurance policy may have a separate deductible for certain kinds of damage.
Purchase All Policies from the Same Insurance Company
Many companies that sell homeowners, liability, and auto coverage will take 5 to 15 percent off of your premium if you purchase at least two policies from them. This combined price is less than purchasing the various coverage from different companies.
Make Your Home Disaster-Resistant
You can easily find out from your insurance company what steps you can take to make your home more resistant to natural disasters and other storms. Just by adding storm shutters or reinforcing your roof, you can save on your premium. Older homes can be retrofitted to make them better able to withstand earthquakes. Additionally, consider updating your plumbing, electrical, and heating systems to reduce the risk of water and fire damage.
Maintain Good Credit
It’s important to establish a solid credit history, because it can greatly reduce the cost of your insurance premium. Insurance companies are always using credit information to price homeowners insurance policies. In many states, your insurance company may advise you of any adverse action including a higher rate. If this is the case, make sure you verify the accuracy of the information on which the insurer relied. To protect your credit standing, keep your bills paid on time and avoid taking out any more credit than you need. Always keep your credit balance as low as possible. Check your credit on a regular basis, and if you notice any errors, have them corrected right away. This will help your credit record remain accurate.