UPDATED: FEBRUARY 20, 2023 | 3 MIN READ
Homeowners insurance is one of the most important things you need to have. It will protect your home and family from any damages or losses. But with rising costs, it can take a lot of work to find a good deal on homeowners insurance. There are many ways to reduce your premiums, such as switching to a different company, getting a quote from multiple companies, and more. Read below on how you can get lower homeowners insurance premiums.
1. Research and Compare
When looking for a homeowners insurance policy, it can be challenging to find the right policy. The cost and level of coverage for homeowners insurance policies will differ for each insurance company.
The best way to determine which company offers the best coverage for your needs is by comparing policies and insurance quotes from different companies. Some companies offer lower homeowners insurance premiums than others.
2. Ask About Available Discounts
Asking for discounts is a great way to get a lower rate on your home insurance. Homeowners insurance companies often offer discounts for things like recently upgrading certain parts of your home or installing safety features can result in lower homeowners insurance premiums.
Sometimes you may get access to insurance discounts through your employer or another association, so it’s worth checking this before you commit to a policy.
3. Increase Your Deductible
Increase the amount you’re willing to pay out-of-pocket for damages before filing a claim with your insurance provider. You will save on your monthly premiums when you pay more for any damages. A higher deductible amount may lower homeowners insurance premiums by as much as 25 percent.
4. Look into Package Insurance Deals
Insurance companies may offer a discounted rate if you purchase multiple policies from them as a bundle, such as home and car insurance. According to the insurance information institute, you could save between 5 and 15 percent by buying two or more policies with one insurance company. Refrain from assuming that a discounted bundle will automatically be the best deal. It’s wise to double-check the individual cost of the home insurance and auto insurance policy from separate companies.
5. Opt-out of Paper Bills
Opting out of paper bills is an innovative idea that can help the environment and save money. Check with your insurance agent to see if they offer any incentives to go paperless with your homeowners insurance policy.
6. Pay Your Premiums Annually
Most insurance companies will allow you to pay for your monthly, quarterly, or annual premiums. While spreading the cost over monthly payments might be the most appealing, you may be better off paying the annual premium.
Insurance companies will typically charge lower homeowners insurance premiums by paying annually.
7. Maintain a Good Credit Score
Depending on your state, your insurance company may use your credit report as one of the factors to determine how high your premiums are. Some states don’t allow using a credit score or your credit history, and some don’t regulate its use.
However, suppose you’re able to maintain a good credit score overall. In that case, it shouldn’t affect you too much if your insurance company considers it.
8. Keep the Details of Your Covered Assets Up-to-Date
Updating the details of your covered assets often is good practice, as items within your home can change now and then. If you have acquired some more expensive items recently, you need to be sure that you have the right level of coverage to protect them.
On the other hand, if you don’t need to cover as many high-value assets anymore, this could result in lower homeowners insurance premiums.
9. Make Environmentally Friendly Changes
There are many additional benefits to energy-efficient home buildings. These benefits can include lower energy bills, and some insurance companies like to reward owners of green homes with discounts. An easy change you can make is replacing old appliances with new energy-efficient applies. You can commit to making more significant changes. In that case, you could replace lighting and water fixtures with ones that consume less energy or fit new double-pane windows that prevent heat from escaping.
10. Only Pay for Insurance on Your House, Not the Surrounding Land
Your homeowners insurance policy covers theft, fire damage, and other perils. The land surrounding your home might not need the same level of coverage. Suppose you don’t include the value of the land when you evaluate the value of your home and assets for home insurance coverage. In that case, you could save some money on your premiums.
11. Make Your Home Less Risky to Insure
When you take out a homeowners insurance policy, the insurer will determine how likely you will need to claim in the future. The higher the risk of making a claim, the higher your premiums will be. Suppose you regularly keep on top of the maintenance of your home structurally and cosmetically. In that case, this can reduce your policy’s risk level.
The following points are some specific home improvements you can make that can lead to lower premiums.
12. Upgrade the Locks on Your Windows and Doors
The cost of your home insurance can be lowered by investing in a few simple upgrades to your windows and doors. These include replacing the locks with new ones and adding security features such as smart or deadbolt locks. Deadbolts can also help lower premiums by adding more protection against intruders.
13. Get a Security System
Installing a security system is a great way to protect your home. Still, it can save you money on your home insurance premiums. Home insurance companies can offer up to a 15 percent discount on insurance policy premiums if a house has smart locks, burglar alarms, or a fully monitored alarm system. While many companies offer a 2 to 5 percent discount for home security systems, you may receive a higher discount for a system that includes 24/7 professional monitoring.
14. Buy Suitable Smoke Detectors
While it’s likely that most homes have some kind of smoke detector, many need more for the size of the home or are in the wrong places. Putting a smoke alarm in every significant part of the house can help to reduce the threat of severe fire and lower the chance of a home insurance claim. Smart smoke alarms can do more than just detect smoke. They can also detect the presence of carbon monoxide, notify your phone if smoke is detected, or even contact 9-1-1 for you to despatch the fire department.
15. Fit a Sprinkler System
Installing a sprinkler system might seem unnecessary, but it adds another layer of protection against severe fire damage in your home. Your insurance company will evaluate a claim risk level for your home; a well-maintained sprinkler system can effectively lower that risk level and your premiums.
16. If You Have a Pool, Install Safety Features
Pools, although fun, can also be dangerous and put you at a higher risk of liability claims in the eyes of your insurance company. Your insurance company may insist you install some basic pool safety features, like a fence around the pool, before they provide coverage for your pool. However, some insurance companies will discount your premiums if you have additional safety features in place. As well as a pool fence, you could add a self-locking gate to your pool area, install an automatic pool cover, and regularly maintain your pool and surrounding area.
17. Make Sure Your Home Can Withstand Your Area’s Natural Disasters
Making sure your home can withstand natural disasters will be different depending on the area where you live. You must be aware if you live in a flood zone or an area prone to windstorms. Do your research and find out what natural disasters there might be a risk of in your area.
The following points are specific improvements you can add to your home to help prepare for natural disasters.
18. Add Storm Doors or Shutters
Adding extra protection to your doors and windows, such as storm shutters, can make your home more energy efficient and enable them to withstand windstorms. This improvement can also lower the chance that you’ll need to replace or repair them. Your insurance company may determine you’re at a lower risk of a claim.
19. Reinforce Your Roof
Reinforcing your roof and replacing worn shingles will help prevent water damage from leaks, flood damage, and structural damage. Suppose you show your insurance company you’re attempting to prevent damage from occurring and therefore trying to avoid a future claim. In that case, this may lower your premiums.
20. Purchase an Automatic Generator for Power Outages
An automatic power generator can be a great help during a power outage. Whether it’s due to a storm or an issue with your local power network, a generator will keep your household going, including keeping ant security system online.
Check with your insurance agent to see if installing a power generator would make you eligible for any discounts on your premiums.
21. Don’t File Claims for Every Little Thing
Filing an insurance claim can sometimes be unavoidable, but if you file claims, this could seriously impact your insurance premiums. Suppose the cost of the damage is low, notably lower than your insurance deductible amount. In that case, you should pay for the damage out-of-pocket to stop your premiums from increasing.
22. Be Aware of Your Dog’s Breed
Some dogs could be more likely to damage your home or even injure someone when they are on your property, resulting in an insurance claim. Most insurance companies have a list of dog breeds that are more expensive to insure or could even be excluded from any policy.
23. Give Up Smoking
Smoking may seem like a personal preference and should be unrelated to your insurance costs, but it can impact you. Smoking inside the home can cause cosmetic problems to your property, but more importantly, cigarettes are a fire risk.
Cigarettes are one of the biggest causes of residential fires yearly. Stopping smoking could lower homeowners insurance premiums.
24. Try to Stay Committed
You should always research when it comes to finding the best homeowners insurance policy. However, if you find a policy that works for you, then sometimes it’s better to stick with the policy you have. Some insurance companies will offer insurance discounts to their long-term customers as a thank-you for their commitment.
What are three ways you can lower the cost of your homeowners insurance?
There are many ways to lower the cost of homeowners insurance. Here are three ways you can reduce your insurance costs. Research and compare policies to find the best deal when looking for a new homeowner policy.
You can also speak to your insurance agent and see if discounts are available. Lastly, increase your deductible, you’ll pay a higher out-of-pocket if you make a claim, but you will pay less over your premiums.
Is a $2500 deductible good home insurance?
A $2500 deductible would result in lower overall premiums. Still, you would need to cover up to $2500 worth of damage out of pocket. If a $2500 deductible is too much for you to cover, then speak with your insurance agent to find the best deductible.
Can you negotiate home insurance rates?
To a certain extent, yes, you can negotiate a home insurance rate. While you can’t negotiate a lower price for your insurance just because you want one. You have control over the insurance company you use, the plan you choose, and how much coverage you need. All of those factors can affect the price you pay for your insurance.
What factor affects home insurance premiums the most?
The most significant factor affecting your home insurance premiums is how much it would cost to rebuild your home if something were to happen. The insurance companies will be able to calculate this cost for you. Still, a higher-value house would cost more to rebuild and, therefore, be more expensive to insure.
How does a homeowners insurance policy work?
Homeowners insurance policies protect the homeowner by covering their home and personal belongings from loss or damage. An insurance policy will cover rebuilding or repairing your home in case of theft, fire, smoke, vandalism, or damage caused by adverse weather. Home insurance policies can also provide liability coverage to protect the policyholder if they are held liable for an accident on their property.
What are the requirements for insuring a home?
To insure your home, you need to own it and not just rent it; there is separate renters insurance for tenants. You also need to know the value of the home. You have an idea of the value of your personal belongings to ensure the value is within your coverage limits.
You also have to consider who will be living in your home and whether or not they are on the same homeowners insurance policy as you.
What percentage of your home’s replacement cost is your deductible?
Depending on your homeowners insurance policy, your deductible is either a flat dollar amount or a percentage of your policy value. The percentage amount will vary for each policy. Still, the rate will be highlighted in your policy documents if you have a percentage-based deductible.
What is the process for filing a claim?
There are several steps to filing a home insurance claim. Contact your insurance company as soon as possible; depending on the damage type, you may also need to contact the police. Take pictures or videos of everything that has been damaged, noting the times and dates of the documentation. After submitting your claim, your insurance company may send an insurance adjuster to assess the damage and verify everything in your claim.
What is the average cost of homeowners insurance in the United States?
The average cost of homeowners insurance is $1,784 a year; however, this is just an average, and many factors impact the cost of insurance. Your coverage level, deductible, and additional risks for your home all play a part in lower homeowners insurance premiums.
What is the difference between homeowners and a renters insurance policy?
A homeowners insurance policy will cover the structure of the building you live in and your personal property, depending on your policy limits. In comparison, renters insurance will just cover your personal property. Your landlord’s insurance policy should cover the structure of the building.
How to Get Suitable Home Insurance
There are many ways to compare insurance policies. Still, if you’re not careful, you could pay more for a less comprehensive policy.
To find out if you can get lower homeowners insurance premiums, use our online rate form. We can show you cost comparisons for the top companies in your area and even put you in touch with a licensed home insurance specialist.