2023 – Top 5 Ways to Lower Your Homeowners Insurance Premium

17 Aug

As the cost of homeowners insurance continues to head up, it is more important than ever to look for ways to keep your premium affordable. According to Money Magazine, the average home insurance premium is expected to climb to $1,784 in 2023 which is a shocking 9% increase from 2022.

We thought it might be a good idea to look at a few different ways to lower your premium as higher construction costs, rising property values and increased natural disasters due to climate change push up the cost of homeowners coverage.

Here are a few tips on how to lower your homeowners premium:

Raise your home insurance deductible

Insurers love it when you have more skin in the game so raising your deductible will usually result in a significant discount. If you can afford to double your deductible, you could see your premium drop by up to 20 percent. 

Always choose a deductible that you can easily afford in the event that you have to make a claim on the policy. Homeowner deductibles typically range from $500 to $2,500 or higher. 

Insurance discounts will help you save

Insurance companies offers tons of discounts, so it is important to make sure you are getting all of the discounts that you qualified to receive. Ask your agent or insurer to do a discount check to make sure all available discounts are being applied to your policy.

Here are just a few homeowner discounts that most insurers offer: 

  • Installing a monitored security system
  • Installing a sprinkler system
  • Home and auto bundling discount
  • Claims-free discount
  • Smart home discount 
  • Military or other affiliation discounts

Upgrade your home 

If you live in an area where there is a major risk of wildfires, hurricanes, flooding or other extreme weather, you may want to consider upgrading your home. Insurers will usually reward you with a discount for improvements such as wind and hail resistant shingles, shatterproof glass, storm shutters or moving your HVAC system off the ground. Insurers offer lots of discounts so check with your insurer to see what home upgrades may result in a discount on your insurance premium.

Helpful Article: Home Upgrades That Can Lower Your Home Insurance Costs

Shop your coverage

One of the best ways to lower your insurance costs is to shop your coverage on a regular basis. Insurers rate risk differently which can result in dramatically different premium quotes. Shop your coverage yearly and get at least five different quotes. Be sure you are comparing apples to apples when it comes to coverage levels and deductibles.

Don’t shop on price alone

While your premium is always a major consideration, price should not be the only factor when it comes to finding the perfect insurance policy. If you have to make a claim on the policy, customer service and how quickly and professionally the claim is handled will become very important so always read reviews of any insurer you are considering.