Homeowners Insurance Tips

Does the sight of your homeowners insurance bill make your blood run cold every month? Do you wish there was a way to shave a few dollars off your monthly premiums? If so, you may be interested in these tips to help you cut the cost for your homeowners insurance. These simple changes can make a BIG difference when it comes to your rate.

Offer to raise your deductible

It may sound counterintuitive at first, and you may be asking: “why should I offer to give my insurance provider even MORE money?”. Understandably, monthly premiums often drop when you agree to a higher deductible. Car insurance and health insurance work similarly. A high deductible signal to your insurance company that you will take care of maintaining the house, you are invested in living there, and you are likely to pay for routine repairs out of pocket to avoid making a claim.

Install new security features

The upfront cost can be off-putting for many homeowners, but a state-of-the-art security system is a great way to increase the value of your home, lower the cost of your policy, and sleep with a little extra peace of mind! If you install a security system, you can lower your annual premium by as much as 5%! If your home does not have smoke alarms, you can also receive a discount by installing them.

Don’t pay for things you don’t need

Consider the value of your home and the risks you are likely to face when buying coverage. It doesn’t make sense to pay for coverage you don’t need. This may mean foregoing coverage for hail or limiting floaters to only vital high-value items.

Try to bundle your policies

Many insurance providers will offer discounts and incentives for bundled policies. If you have a positive business relationship with your auto insurance company, consider reaching out to them to obtain a quote for homeowners insurance. Additionally, you may even have experience with their claims response process. Homeowners rarely get a chance to see how their provider responses to claims until the situation are dire. In this case, if you’ve previously filed an auto claim, you may already know how your provider communicates and prioritizes you.

Finish paying off your mortgage

Often paying off a mortgage is a financial impossibility for many homeowners. However, if your finances allow it, it’s a good idea to prioritize completing your mortgage. Homeowners who own their home can typically negotiate lower premiums. Your insurance provider reasons that people who own their home outright will be more likely to take good care of it.

Regularly review and compare policies

With any negotiation, it’s a good idea to have multiple quotes in hand before you begin. Many insurance providers will be motivated to offer you a lower price than the one you were initially quoted if you do some comparison shopping and present them at a better rate from their competitors. Even after you purchase a policy, you should still review the terms once a year. There could be language in your policy that would provide you with lower premiums as a result of improvements made to the home.

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