Here’s the only homeowners insurance-savings guide you’ll need
Homeowners insurance is a must-have to protect your house from damage, theft, and vandalism. With that said, homeowners insurance can be expensive, costing an average of $1,500 per year, depending on your location and home’s value. However, with some research, a few phone calls, and helpful home projects, you can get your premium down to a lower and more manageable rate.
If you have auto or life insurance with a major company, such as AAA or MetLife, you may be able to save money by bundling your insurance plans. Many insurance companies offer discounts for people with multiple policies as a thanks for their loyalty. Talk with your insurance provider about whether that option could work for you, and ask how it would affect your monthly insurance costs.
Just as you would for a new piece of luggage or a new car, it makes sense to look at all the viable options to guarantee you’re purchasing the right homeowners insurance for your situation and budget. Companies have different rates for similar or identical policies, so it makes sense to get quotes from at least three insurers so that you can compare them. If you don’t know where to begin, ask your friends and family for recommendations of companies they have used and loved (or dislike, to eliminate some options).
Most homeowners insurance policies have a deductible of at least $500, but you can look into raising it to $750 or $1,000, which will likely lower your monthly premium payment. Before making this change, be sure to stash away emergency funds to cover the deductible amount in case you need to file a claim.
Many larger insurers offer discounts for a variety of reasons. Call your provider and see if they offer price breaks for any of the following:
No claims: If you haven’t made an insurance claim in a decade, you might be able to save on your monthly rate.
Age: If you are 55 or older, you might qualify for a homeowners insurance discount.
Gated community: If your home is in a gated community, the insurance company views it as less likely to be robbed and might offer a discount in exchange for this higher safety guarantee.
Homeowners association: If you are a member of a homeowner’s association, you might be able to get a discount for the same reasons as living in a gated community.
Non-smoking property: Smokers will fork over more money for homeowner’s insurance, as their homes are a higher fire risk.
Water sensors: These devices can detect leaks before they become bigger problems—floods. After installation, ask your insurer if there is a discount available for having water sensors.
Security devices: Some security devices, like deadbolts, carbon monoxide detectors, and burglar alarms, can earn a homeowners insurance discount. Ask your insurance company to find out which kind of security devices will lower your rate.
Professional associations: In some cases, being a member of an alumni group or buying your insurance through your employer can reduce your premium.
Your roof is the ultimate protector of your home, which is why homeowners insurance companies take its condition and age seriously. Insurers offer hefty discounts for roof upgrades and replacements, especially if you use impact-resistant materials that can withstand extreme weather conditions. Before moving forward with your roof replacement, talk with your insurance company about which roof materials will garner the greatest discount.
If you live in an area that’s prone to natural disasters like wildfires or hurricanes, there are home improvement projects that you can take on to lower your homeowners insurance rates. These types of improvements include installing storm shutters and shatterproof glass on your windows. You might also consider retrofitting your home if you live in an area with earthquakes.
The health of your credit score can impact your home insurance rates, as many states use a credit-based insurance score to decide your premium. Monitor your credit score regularly and read your credit report closely to look for errors, and fix them as soon as possible. In addition, try to lower your overall credit card debt and pay your bills on time to stay in good standing with your creditor and insurer.
Things that are fun for adults and kids alike may be red flags in the home insurance world. These high-risk items are known as “attractive nuisances,” and include swimming pools, trampolines, playground areas, and skateboard ramps. These are all considered liability risks to your insurer, and ditching them could save you money (and possibly a trip to the emergency room).
When deciding your rate, homeowners insurance companies look at all the claims you’ve submitted in the past seven years. If you’re historically a high-frequency filer, they think you’ll be more likely to file in the future, and will adjust your premium accordingly.
Before filing a homeowners insurance claim, consider the cost of the repair as well as your deductible. Filing a claim for something that is only marginally more than your deductible might not make sense, as you’ll have a claim on your record and will only get a small reimbursement.
