Home insurance is important to have—and for many, it’s a major expense, costing homeowners about $1,100 every year. While your insurance premium isn’t anywhere close to what it would cost to rebuild your home if a disaster really did occur, it doesn’t mean you want to pay the full price for home insurance year in and year out.
Luckily, there are a few ways to save your insurance company might not tell you about. Try these tips and see if you’re available for special discounts.
1. Bundle your insurance.
This is an easy savings tip that can save you 10 to 20% on your home insurance rate. While this number may be different depending on your provider, it’s an easy way to save. Simply ask your insurance provider about bundling your policies.
2. Secure your home.
You have probably heard that a home security system is one of the biggest deterrents for burglars. Security systems limit risk and may even qualify you for a discount on your home insurance premiums. Some insurance companies will give you a discount if you have other types of security. For example, taking steps to limit potential damage from fires or storms may net you additional discounts.
3. Bump up your credit score.
This may be easier said than done, but take steps to maintain your credit. These include paying bills promptly, paying down credit cards, and making sure to monitor credit reports. Insurance companies are often allowed to use credit score to predict how likely the insured is to make a claim. People with poor credit scores may face higher rates because of this.
4. Increase your deductible.
Most insurers recommend a $500 deductible. The deductible is how much you will have to pay for a loss before the insurance company will step in and pay your claim. If you are able to raise your deductible, you may be able to reduce your premium by up to 25%. However, depending on where you live, you may be required to have a separate deductible if your area is prone to natural disasters such as floods or windstorms.
5. Don’t mix up your house’s purchase price and rebuilding costs.
Even if you were to lose your home in a disaster or experience a break in, the actual land under your home isn’t at risk. When you’re buying homeowners insurance, don’t include the land value. This will only drive up your premium.
6. Look for uncommon discounts.
If you’ve been with the same insurance provider for several years, you may get a discount for being a faithful policyholder. Retired seniors who are over 55 may also be eligible for a discount of up to 10%.
7. Compare rates.
This is true of any insurance policy you hold. You should always compare rates to make sure you’re getting the best one. Luckily, there are tools on the internet that make this much easier. Sites like Home-Insure.com help you compare rates efficiently and allow you to get the best deal for your budget.