personal finance | green plant at home

Lowering Home Insurance Cost

Highlights

  • Compare quotes periodically to ensure you are getting the best home insurance rate.
  • Increasing your deductible will lower your monthly insurance premium, but you'll pay more out of pocket in the event of an accident.
  • Improving your home to protect it against a disaster may lower your home insurance rate further.
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Learn How You Can Save on Home Insurance

Protecting your home with the proper home insurance coverage is always important.  Get the insurance coverage you need without overpaying by following these tips.

  • Comparison shop - Home insurance cost can vary dramatically across different providers for the same coverage options.  Shop around periodically to find out if you are still getting the best rate.  The Internet is a quick and easy way to shop for home insurance.  As you shop around, research about the companies you are getting quotes.  You'll want to work with a company that not only offers a  great rate, but also strong financial stability and a great customer service when you need assistance.
  • Increase your deductible - your deductible is the amount you have to pay out of pocket before you insurance provider starts to pay.  Increasing your deductible from $500 to $1,000 could save you up to 25%.  Consider increasing your deductible only if you have the financial assets to do so and if you are willing to take on more risk.
  • Get a multi policy discount - by insuring your home and your auto with the same provider, you could save up to 10-15%.  Keep both your auto and home insurance policy in mind as you shop around and you may be able to save more on both.
  • Take steps to protect your home from a disaster - speak with your insurance representative to find out what home improvements you can do to reduce your home insurance premium.  Updating and rewiring your home's electrical, plumbing, and heating systems, for example, can reduce the likelihood or a fire or water damage and lower your insurance premium.
  • Periodically review your home insurance policy - review what your home insurance policy covers and determine if you need more or less coverage.  For example, if you recently remodeled your home, you may want to increase your coverage limit to have adequate coverage.  Conversely, if you have hurricane insurance in a non-hurricane prone area, you may want to drop the coverage.  Additionally, if you no longer have any expensive jewelry, you may want to stop paying the additional coverage that falls outside a standard homeowners insurance policy.
  • Check for insurance discounts - insurance providers offer many discounts and the discount amount vary by providers.  Make sure you are receiving the discounts you are eligible for.  Discounts may be given for having a home security system, an indoor sprinkler system, smoke detectors, dead bolt, or fire extinguisher.  If you are 55 or older and retired, you may receive an additional discount of up to 10%.
  • Maintain good credit - your credit score is one of the factors insurance companies used to price your policy.  Maintaining a good credit score can keep your insurance premium low.  If you credit score has improved, you should consider shopping around or asking your existing provider if your premium can be lowered.
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(7 Votes)

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