If you are a home owner then you would have a homeowners insurance policy in place which could be costing more than it should.
However, there are a few ways in which you could shave off some discounts on your premium and get a better deal on your policy.
These are some ways which you save on your homeowners insurance premium.
Raise Your Deductible
Your insurance deductible affects your premium. Raising your deductible will reduce your premium payment and put back money that would have gone to the insurer in your pocket . For example, increasing your insurance deductible to $1000 from say $500 can save you as much as 20% according to Mark Friedlander, spokesperson for the Insurance Information Institute.
Improve Your Home Security
Putting in place basic home security features, like smoke detector, deadbolt locks and burglar alarm can get you a 5% discount on your policy. Adding a comprehensive sprinkler system to the basic security features could increase your discount to as much as 15% or 20 %.
Skip Small Claims
You are better off paying out of pocket for smaller expenses rather than filing a claim.
Avoiding making relatively small claims on your insurer could pay off in the long run as some insurers offer certain discounts to clients who remain claim free over a certain period, usually a few years.
Ask About Lesser Known Discounts
There are lots of available discounts offered by most insurers which you won’t know about unless you ask. Examples are discounts offered for;
- Recently bought house
- No smokers living in the house
- Choosing paperless billing
- Paying your premium through automatic bank payments
- Having a career in specific areas like , engineering, teaching etc,
Account For Home Improvements
Improving your home can make you eligible for some homeowners insurance discounts. Putting in place new features like storm shutters and impact resistant roofing which ultimately makes your house tougher to damage could lead to insurance savings. Upgrading outdated plumbing and electrical systems could also result in premium discounts.
You should request a new inspection of your home for evaluation of these improvements in order to maximize your potential discounts.
Bundle Your Auto and Home Insurance
You would typically save between 5% to 15% on your homeowners insurance premium by bundling your auto and home insurance policies with the same insurer. Several insurance companies provide discounts for clients who buy more than one type of insurance policy from them.
Build Your Credit Score
Your credit score could substantially impact your home insurance premium. This is because insurers in several states use credit based insurance score to fix rates. Having a low credit score in such situation could result in higher rates.
You can improve your credit score through steps like reducing credit card balances and paying bills on time. Also scrutinize your credit report to identify any errors.
Get Rid of High Risk Features
Although it can be lots of fun to have items like swimming pools or playground equipment at home but these can increase your homeowners insurance premium. Doing away with such items could lead to decent savings on your insurance.
Different insurers offer different rates for identical homeowners insurance coverage . You should shop around for the best rates available as this could lead to savings on your insurance.
There are tools on the websites of most insurers which allows you to get quick home insurance quotes by providing some basic information. This will enable you compare rates and also let you see if there are savings to be made by switching insurers.