Homeowners insurance is a must-have tool to safeguard yourself against the risks that come with owning a house. Existing homeowners will receive their insurance binder 30 days prior to the renewal date so that it can be placed on the loan and the escrow account can be updated. It can be a significant expense, particularly for those who live in high-risk areas, but here are a few ways to save on homeowners insurance.
If you’re looking to save on your insurance premiums, you’re in luck. We’ll outline five simple tips that can help you reduce your costs. So whether you’re looking for ways to lower your deductible or get discounts on your policy, keep reading for some helpful advice.
- Bundle insurance policies to save more
One way to save is to bundle your insurance with other policies, like car insurance. It’s referred to as “bundling” and can often lead to a discount from your insurer. And not to mention the convenience of having all your insurance in one location. When shopping for home insurance, find out whether your preferred home insurance company has the option of bundling your policy with other insurance options and weigh out the pros and cons, such as savings or any hidden costs.
- Increase the deductible on your insurance policy
A low deductible (the amount you pay out of pocket when making an insurance claim) generally results in a higher monthly premium. Consider raising your deductible to lower your monthly or annual insurance cost. It might save you hundreds of dollars over the long run, particularly if you never have to make a claim.
It’s not unusual for many homeowners to remain in their homes for 10-15 years before filing their first claim. A larger deductible may equal thousands of dollars in your savings or investment account.
Another thing to note is that if you’re going to raise your deductible, make sure you have enough money set aside to pay it in the event of a catastrophe. You may pay your deductible with savings from lower premiums.
- Look for further discounts
Are you taking advantage of all available discounts? Different insurance providers offer different discounts, so you may need to research to check if you qualify for any savings.
There are some basic savings options available for the installation of safety features and home security devices. It may include installing an alarm system, smoke detectors, or stronger bolt locks. Apart from this, your payment method may also save you money — some insurers provide discounts for setting up automatic payments or paying your six-month subscription in full beforehand.
You may also qualify for a discount if you don’t submit a claim for a certain period. In general, it’s important to practice caution when making claims. If you can pay out of the pocket easily, consider doing so rather than submitting a claim. While it may seem counteractive to pay for insurance you seldom use, filing fewer claims is usually better in the long run.
- Shop more insurance policies
Homeowners’ insurance rates vary greatly from one company to the other, so make sure to shop for home insurance and compare rates before you purchase a policy. Several factors go into determining homeowners insurance rates, such as the age and condition of your home, the amount of coverage you need, and the location of your home.
Some companies also offer discounts for things like installing security systems or being claims-free for a certain period. By researching and comparing those factors, you can make sure you’re getting the best possible rate on your homeowner’s insurance policy.
- Keep a close eye on your credit score
Your credit score is important for more than just getting a better interest rate on a loan. Many insurance companies use credit scores as one of the factors in determining premiums. Therefore, make sure to keep an eye on your credit score and take steps to improve it if necessary. One way to get started is to request a free copy of your credit report from the major credit reporting agencies. It will allow you to identify any errors and take steps to correct them.
There are several things you can do to improve your credit score, such as paying your bills on time, maintaining a good credit history, and using a lower proportion of your available credit. By taking these steps, you can ensure that you get the most favorable homeowners insurance rates.