Ways to Save on Your Homeowners Insurance

December 25, 2017

The economy is tight. Wage growth can barely keep up with the pace of inflation. For the average American, any strategy that can contribute to savings is a big help. As a homeowner, one of the potential saving point you can exploit regards your homeowners insurance.

According to the Federal Reserve, a typical homeowners insurance policy has a premium that can cost you around $300 to $1,000 on an annual basis.

Fortunately, there are ways to reduce your policy payments. Keep in mind these helpful tips.

Compare rates

If you haven’t taken a policy yet, the best thing to do before you sign a deal with any provider is to ensure that you got the best one in the first place. Not all policies are created equal. Each provider has different coverage, perks, and pros that you must pay attention to before you put your name on the dotted line.

You may use online comparison tools or inquire locally and do a manual comparison of the providers. But before anything else, you must know what you are looking for in your policy first as this will serve as the basis of what your “ideal” policy should be.

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Ask for discounts

Putting extra security measures around your house, having new plumbing or electrical wiring, weather resistant retrofits, and any other security device or home feature that reduces risk of damage or loss can help you lower down your premium cost. Even being able to establish that you haven’t had any insurance claims for a long period of time can be negotiating points with your provider when it comes to discounts.

Raise your deductible

Per the Insurance Information Institute, you can have up to 25 percent of savings in your insurance premium if you can raise your deductible to $1,000 from $500.

A deductible is a specified amount of money that an insured individual must pay before the insurer pays a claim.

You can also check for separate deductibles if you are living in areas prone to natural disasters such as floods and earthquakes.

Maintain good credit

Credit checking is not limited to lenders. Many insurers are also starting to look into consumers’ credit reports and ratings which they use to gauge how much they are going to be charged.

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Have the right canine companion

The breed of dog you have inside or outside your home can apparently affect how much your insurer will add to your premium. And it makes sense as your seemingly harmless human companion may sometimes cause liability to yours or others’ properties.

Check your floaters

A floater is an added insurance coverage for some pricey possessions you have at home. This includes your expensive equipment and jewelry, among others. Once you cease taking possession of these items, you can reduce or cancel your floaters.

Your age can be considered

Older homeowners have a greater chance of acquiring cheaper insurance premiums.

Just a reminder. Your homeowners insurance does not cover for every damage that occurs to your home. A standard insurance policy typically includes four types of coverage:

  • coverage for the structure of your home
  • coverage for your personal belongings
  • liability protection
  • additional living expenses in the event that you are temporarily unable to live in your home because of any insured disaster

If you want to be comprehensively covered, you may have to purchase other policies separately. However, having a homeowners insurance is a must for a homeowner. Not only does it serve as your buffer for the unexpected; it also safeguards your peace of mind.