Whether you’re in the process of buying a new home or you’re already living in one, learning how to lower your homeowner’s insurance rates can benefit you at any time. If you have been locked into a policy for years or are just starting to look into your options, you have great opportunities to save immensely on both your premium and monthly rates.
Is Money Escaping Your Pocket?
Many homeowners aren’t aware of the countless ways they can save on their homeowner’s insurance rates. An essential key to receiving discounts that will stop money from escaping your pocket is simply knowing about them. More often than not, if you don’t mention the many discounts that apply to your home, you won’t receive them.
Before Buying a Home
If you’re looking into homeowner’s insurance before buying a home, it is good to know that the house you purchase could impact your rates significantly. When you’re deciding where to buy your home, consider that living in an area with high crime rates can increase your policy rates significantly as well as living in an area prone to hurricanes, earthquakes, flooding, or tornadoes. Additionally, the cost of your insurance is based on the cost to construct the house. This means that the smaller your home is, the less your insurance will be.
Big Savings
There are a few slight changes you can make to save big money in the long run on your homeowner’s insurance. The first tip is to raise your deductible. According to the Insurance Information Institute, increasing your deductible from $500 to $1,000 could lower your premium by 25%. You just need to ensure you have enough money set aside if you need to file a claim down the road. Making your home secure with smoke detectors, deadbolts, security cameras, and so on can save you anywhere from 5%-20% on your policy. Bundling your home and auto insurance is another way to save. By doing so, you can commonly save 5%-15% on your premium-plus receive other possible discounts.
Deals for New Homeowners
You may not know that there are discounts on many policies for new homeowners. These include but are not limited to first-time homeowner discounts and new member discounts. Remember, home insurance companies want you to sign up with them. Leverage what you know by asking about any discount you could use to your advantage.
Things to Avoid
Anything that will increase the risk of your home being damaged or a person being hurt on your property will impact your insurance rates. Avoiding trampolines, swimming pools, and playgrounds can help get you a better deal.
Existing Homeowners
If you’ve already purchased your homeowner’s insurance policy or are transitioning into a new one-don’t fret. There are still numerous ways for you to save. If you’re transitioning to a new policy, there are early signing discounts for signing within 7 days before your current policy runs out. There are also senior discounts and welcome discounts for signing up with a new insurance company. Adding home improvements such as storm shutters, impact-resistant roofing, or upgrading your plumbing and electrical can positively impact your rates. Make sure to update your insurance company as soon as you upgrade your home in any way.
Build Your Credit
If your credit score sits below 630, it is a good idea to build your credit before shopping around for a home insurance policy. A low credit score can significantly impact your premium and monthly rates as well.
Shop Around
One piece of advice that is crucial is to always shop around before choosing an insurance policy. It’s possible that you can save $1,000 a year on your policy simply by taking the time to look through your options.
Now You Know
After taking in this information, you will be well prepared to make wise decisions on your homeowner’s insurance. Don’t forget-you always have options and there are countless ways to save. We’re betting on you to find the right policy that’ll keep your wallet and home safe for a long time coming.
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