Easy Ways to Save Money on Homeowners Insurance

15 Aug
Homeowners Saving Money

The average annual policy price has hit $952 with some states coming close to an average price of $2,000 a year.

Homeowners insurance is a necessity, but it can also be expensive. According to a recent study, the cost of homeowners insurance has increased about 50 percent over the last decade. Currently, the average annual policy price has hit $952 with some states coming close to an average price of $2,000 a year.

We all want to save money, and there are definitely ways to bring down the cost of your premium but one thing you don’t want to do is skimp on your coverage. You never know when disaster will strike, but when it does, you do not want to be without the proper coverage or you could be on the hook for some major expenses.

Luckily, there are less drastic ways to lower your insurance costs. Here are just a few tips for bringing down your premium that will make your insurance more affordable while also keeping your home and family properly protected.

Shop Around: This is the number one way to lower your premium. Insurers rate risk differently so there can be huge price differences between insurance companies. Experts recommend shopping your coverage every two years at a minimum or whenever you make changes to your home that increases its value.

It’s best to get home insurance quotes from at least five different companies and make sure you are comparing apples to apples when it comes to coverage levels and deductibles. At HomeInsuranceKing.com, we can compare up to 12 different rates and coverage options which helps shoppers easily review a variety of saving on a new policy.

Improve your Credit Score: Insurance companies love statistics and stats show that the higher your credit score, the less likely you are to make a claim. If your credit score is less than stellar, you will pay more for all types of insurance, including homeowners.

Improving your credit takes both time and discipline. Pay all bills and credit accounts on time. Pull your credit report and check it for errors, they are more common than you think. If you find an error, contact the credit-reporting agency to get it removed from your report.

Monitor your credit score and as it improves, notify your insurer and ask them to pull a new quote for your insurance, this is also a good time to shop your coverage.

Bundle it Up: Buying your home, auto and life insurance from the same insurance company will usually result in a significant discount. The discount amount will vary but expect savings in the 15-25 percent range.

While bundling is a great idea, it isn’t always the cheapest option. Shop a variety of insurers and don’t be afraid to unbundle your coverages is you can find the same quality coverage at a better price when you buy your various policies from different insurers.

Discounts, Discounts, Discounts: Insurers offer tons of discounts so make sure you are getting every discount that you are qualified to receive. Consider going paperless, or paying your annual premium all at once to get an additional discount. While some discounts may be small, when they are added up, the savings can be significant. Here are a few examples of possible discounts:

  • Bundling
  • Paperless policies: Receive all of your communications via email and save.
  • Smoke free: Some insurers offer a discount if no one in the home smokes.
  • Security systems: Installing a monitored security system will result in a discount
  • Claim free discount: If you have never made a claim on your policy ask for a discount.

Upgrade Your House: Local weather conditions can dramatically push up your premium. If you live in tornado alley or a flood prone area, upgrading your home with storm shutters, wind resistant roofing materials or even a sprinkler system can result in a significant discount.

In older homes, upgrading your electrical, plumbing or mechanicals can result in a discount as well.

Raise Your Deductible: Raising your deductible is a great way to lower your premium. Bumping it up from $500 to a $1,000 can result in savings up to 25%. While raising your deductible is easy, covering it in the event of a claim may prove to be more of a challenge. Be sure you can easily afford whatever deductible you choose. Experts recommend putting your deductible amount in an interest bearing account and leaving it there until it is needed.

Hopefully these tips will help you lower your homeowners premium. If you are ready to shop your coverage we can help. Simply fill out our quick and easy quoting application online and we will shop up to 12 home insurance rates to help you find a more affordable policy.

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