Reviewing your policy annually is key to getting the best rate and avoiding coverage for items no longer present, or understating their value after sale. Installing storm shutters or impact-resistant roofs may also save money in premiums.
Pay Your Policy in Full
Homeowners insurance may not come cheap, but there are ways to cut the costs. Many factors contribute to its cost, such as your home’s value, age and location as well as replacement costs and security features. A policy’s deductible also plays an integral part; increasing it may help bring down premium costs.
Filing even small claims can increase premiums significantly. That is why many insurers provide discounts for homeowners who maintain an incident-free history.
Choose wisely: the type and amount of coverage can have an enormous effect on your home insurance rates. Discuss all available options with an experienced agent; some policies even offer living expense benefits if an unexpected loss causes you to vacate, such as an earthquake or hurricane.
Some homeowners can reduce their insurance premiums by bundling home and auto policies with one company. Others may find savings in adding home security systems, installing smart smoke detectors or making energy-saving upgrades. Many insurers provide discounts for safety devices like burglar alarms, sprinkler systems, fire extinguishers or deadbolt locks.
Comparing prices across companies is also worthwhile, since rates for identical coverage can differ widely depending on who provides it. According to NerdWallet research, some homeowners could save an estimated $1,000 or more by finding the cheapest policy option available.
Review Your Coverage
Multiple factors can have an impactful effect on homeowners insurance premiums, including your location and home age. While these variables are out of your hands, there are ways to lower rates such as increasing your deductible or comparison shopping.
One way to save is by reviewing your policy regularly, which can ensure your property values are accurate and that you’re not overinsuring it. If you suspect overinsurance, speak with your agent. They can provide a per square-foot estimate that can help determine the correct replacement value of your home.
Reviewing your policy can also reveal whether or not you’re eligible for additional discounts, such as those for new homebuyers, non-smokers or installing fire alarms.
Discounts can also be achieved by making payments on time and opting for paperless billing. Furthermore, if your term is nearing its conclusion, shopping around could yield better deals before your renewal date – though mid-term cancellations typically incur fees. Also be mindful of financial stability of insurers before switching companies; losing savings due to unwise decisions shouldn’t happen!
Ask About Additional Discounts
Home insurance policies often come with additional discounts that you should inquire about from your provider, such as mortgage payoff discounts, non-smoking status discounts and credit score upgrades that could help lower premiums significantly. Therefore it’s always worth speaking with them!
Increased deductibles may also help save you money; NerdWallet estimates that increasing it from $1,000 to $2,500 typically saves homeowners 13% annually. Of course, only consider doing this if you can afford the higher costs if necessary.
Some companies provide loyalty discounts to clients who remain with them for extended periods, with claim-free customers often receiving even deeper savings. Other factors, such as your credit history, marital status and proximity to fire stations that insurers consider can impact your rate as well.
Your insurance costs could also be reduced by bundling it with other policies, like auto or homeowners insurance, or taking advantage of payment plans that allow for annual payments rather than monthly ones.
Shop Around
As with any purchase decision, it is wise to carefully compare prices and coverages when searching for new home insurance or renewing existing policies. Since your location and property make you unique, different companies may charge different amounts for similar policies based on their perceptions of risk. When making comparisons across companies be sure to get quotes that contain identical deductible and coverage limits from each provider you consider.
Asking for discounts can also help bring down costs. Some insurance providers offer them for paying premiums in full or bundling home and auto policies together; there may also be incentives if you install safety features such as alarm systems, extra smoke detectors or stronger bolt locks into your home; these could lower overall perceived risk, ultimately leading to reduced premium rates.
Increase your deductibles to save on homeowners insurance by raising them. Do remember that raising them may mean incurring additional out-of-pocket expenses should you need to file a claim, but the lower rates might justify this move. Furthermore, some policies offer special deductibles for disasters like hurricane damage or windstorms; typically these are percentage-based and could even exceed standard policies’ deductibles significantly.
