Six Ways to Help Lower Your Home Insurance Premium
Home ownership already comes with additional costs, and home insurance is becoming more expensive for some property owners due to increased damage from catastrophic events such as wildfires and floods. The state farm recently stopped offering new policies in California, and Florida residents could face rates up to 40% after several insurance companies left the state last year. Insurance bills are expected to increase by an average of 7% this year .
If you’re new to the homeowner insurance market or looking to switch policy providers, comparing multiple offers can help you find the cheapest rate (just make sure you’re getting the coverage you need). Besides shopping, there are several other ways to lower your home insurance costs.
Expand your franchise
One of the easiest ways to save money on your policy is to increase your deductible (the amount you have to pay before your coverage starts). Home insurance deductibles most often range from $500 to $2,000, and increasing your amount from $500 to $1,000 can save you up to 25% of your premium.
Combine home and car policies
Insurance companies want more from your business, and having all your policies under one roof can save you money on insurance premiums. According to Insurance.com , when you combine your home and car policies, you’ll get an average discount of 18%, but it can be significantly more depending on the company.
Apply strategically
Many insurance companies encourage you not to use a home insurance policy by offering no-claims discounts. If you have not applied for a certain number of years (usually three to ten years), you may qualify for these savings.
In addition, as we have already said, filing a lawsuit does not always make financial sense . If the cost of repairs is less than or slightly above your deductible, or you have already filed multiple claims, you may be penalized by higher insurance premiums that will cost you more than the payout. Also, note that home insurance policies have a long list of specific exclusions and do not cover wear, tear, and neglect.
Report home improvements and security updates
Home insurers love it when you make your property safer and often reward you with policy savings, so let them know when you’ve invested in upgrades that protect against weather damage, theft, or accidents. Report these features:
- Leak and fire protection systems
- Security systems
- Mortise locks
- Upgraded electrical, plumbing and heating systems
- Storm shutters
- Roof made of heat-resistant material
Request a discount
Your insurance company may have discounts that are not explicitly advertised, so it doesn’t hurt to ask if you qualify for any savings. For example, some insurance companies offer discounts for seniors, couples, and repeat customers. NerdWallet lists a few lesser known discounts :
- You live in a non-smoking home
- Are you a new homeowner?
- You agree to paperless invoicing or payment of premiums through EFT
- You work in a specific occupation (for example, teachers, first responders, and members of the military may be eligible)
Get rid of “attractive troubles”
Pools, trampolines, and playgrounds are fun backyard items, but they also increase the liability and cost of your home’s insurance. Other ” attractive nuisances ” include treehouses, old appliances, water features, and unfinished building projects, which can pose a particular risk to children and teenagers. Consider getting rid of them when not in use, or at least take every precaution to keep your property safe.