Home insurance can be expensive, and premiums seem to keep on rising. You have homeowners insurance but how often do you use it? Sometimes the cost seems to outweigh the benefits. But don’t throw out your insurance or search for a new company quite yet. There are many options available that will allow you to lower your insurance premiums and avoid the hassle of searching for a new policy.
Properly insuring your home is important for every homeowner, but it doesn’t have to be expensive. Here are our top 10 tips you can pursue that will allow you to lower the price of your home insurance at little hassle.
1. Take care of you home
Most homeowners insurance policies do not protect against wear and tear. It’s up to the homeowner to take care of their home and keep repairs up to date. Protecting your home starts with preventative measures and patching a hole in your roof is the first step. If you take care of your home and keep it fixed up and healthy, you will need to file fewer claims caused by wear and tear issues.
Some home insurance companies will see this effort and note the risks that will be prevented because of it. If an insurance company sees you as less of a risk of financial loss, they may lower your premiums. Protecting your home starts with caring for it. Keep your home healthy and your provider may lower your premiums.
2. Bundle your policies
Often times an insurance company may offer discounts for clients who bundle their policies. Insurance companies want as many clients as they can have – more policies means more premiums for them. That’s why they typically will reward customers who purchase a home and auto insurance policy with the same company. By bundling these two policies, you may qualify for a decent discount.
Some insurance companies offer up to 50% off of your insurance premiums if you bundle your home and auto policies. Speak with your insurance agent to find out what your options are. Your insurance company might not offer an auto insurance policy but some regional lenders partner with other companies who do offer auto insurance.
3. Raise your deductible
By raising your deductible, you are claiming responsibility for more of the damages during a disaster. You will put more money down to be used for repairs and replacement costs, but your premiums will go down in response. Disasters don’t happen too often, and you may end up paying your premiums and never filing a claim. If your home is at a low risk of disaster, raising your deductible may be the smartest option as it has a lower chance of being needed.
4. Good credit
Some insurance companies will offer lower rates for better credit. If you are able to show to your insurance company you are reliable when it comes to paying your dues, they may reward you. Insurance companies don’t like taking risks and so if they see you as a potential for loss, they’ll raise your rates to counter this potential. The better your credit, the more your company will trust you to pay them back.
5. Take security measures
Homes that have security systems in place are less likely to be robbed than homes that don’t. By protecting your home from theft or fire with an alarm system, you are preventing yourself from needing to file serious claims. Insurance companies will see a home with more security measures in place as less likely to file a claim.
If you are able to show your insurance that you are taking the first step in preventing disasters from occurring, you may have your premiums lowered. Insurance companies like proactive customers so prove to them that you are ready to prevent risks rather than rely on the insurance payout.
6. Loyalty
Many insurance companies reward customers who have been a client for years. Often times, you’ll find a loyalty discount is offered meaning, the longer you stay, the more discounts you’re eligible for. Some insurance companies offer a decreasing premium or an accident forgiveness policy for auto insurance. Insurance companies don’t want to lose customers that they value. By offering a loyalty discount they are providing an incentive for you to stay.
7. Reduce the risk of flooding
Along with the above-mentioned security risk prevention, flood prevention can help reduce your insurance premiums. By taking steps to protect your home from flooding, you are showing your insurance company that you’re attempting to prevent disaster and lowering your chance of filing a claim.
8. No unnecessary coverage
By re-evaluating your insurance policy, you may discover that you have unnecessary coverage. If you have moved homes to an area less at risk of flood damage, you might consider eliminating a flood protection policy. If some of your belongings have been sold that were more expensive, you could eliminate any riders you purchased covering them. Unnecessary coverage adds on to your insurance premium and could be tossed aside.
9. Reduce your claims
By filing claims, your insurance company will be required to pay more to resolve any issues. The more claims you file, the more of a risk your insurance company will consider you. Often times, policyholders file unnecessary claims that could easily be fixed by themselves leading the insurance company to raise their rates the coming year.
If you can avoid filing a claim, it’s highly recommended. Filing a claim may allow you to avoid spending money to repair a window now, but the premium you pay next year can be overwhelming. The less claims you file, the less likely your insurance will raise your rates and sometimes you may even qualify for a discount.
10. Look for discounts
Insurance companies have plenty of discounts they offer their customers. Sometimes they might not be readily mentioned. Ask your insurance agent about discounts that you may qualify for. Some insurance companies offer a good student discount or a good driver discount. There may be some discounts you qualify for that you don’t even know about.
For more on home insurance discounts, read our article here.
