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Are you looking for ways to save on your homeowners’ insurance?
Home insurance is a vital component of homeownership. If you have a mortgage, your lender requires you to insure the home. Even if you bought your home in cash, or you’ve paid off your mortgage, purchasing home insurance is a smart way to protect your asset.
With the average homeowner spending more than $1,000 annually on home insurance, however, the expense can be prohibitive.
The good news?
In this article, we are telling you how to save money on homeowners insurance. Read on!
Plan for Homeowners Insurance Before Buying a Home
We know you want to skip this tip if you’re already a homeowner but hold your horses. You could be in the market for another property soon, who knows!
Before buying a home, understand how various variables will influence the cost of insuring it.
For instance, consider the location. If a property is in a hurricane or earthquake-prone area, for instance, it’s going to cost more than average to insure it.
Other variables that affect home insurance premiums include the size and age of the property, proximity to a fire department, and replacement cost.
Maintain a Strong Credit Score
A strong credit score gets your more than lower mortgage interest rates. It’ll also get you lower home insurance premiums.
Home insurance companies use your score to determine the level of risk you present as a client. A strong score means low risk, which translates into lower premiums.
To maintain a good or excellent credit score, settle your bills, maintain low credit card balances and, importantly, don’t default on any loans.
Shop Around for the Best Deals
When you were ready to buy your home, you shopped around for a property that suits your budget and living needs.
To get the best homeowners insurance at good rates, you also need to look around.
Go online and compare quotes from various home insurance companies. Don’t shun the smaller companies thinking their policies don’t measure up. Hippo Insurance, for instance, is an ideal place to look. Visit now to learn how their products are disrupting the market.
Have friends and relatives who are also homeowners? Ask them about their insurance experience.
The wider you cast your shopping net, the greater your chances of landing the best deal.
In addition to your home, you also need to insure your car, health, life, and even pets. Herein lies an opportunity to save on your homeowners’ insurance.
This opportunity is called bundling up!
Some home insurance companies offer other insurance products, such as auto insurance or pet insurance. If you buy more than one policy from them, you could qualify for a decent discount.
Even if the company doesn’t advertise that it offers a discount when you buy more than one policy, bundling gives you some power to negotiate. Ask your insurance officer for a discount before committing to the firm. Rather than lose your business, the company could give your a pretty cut.
Don’t Hop Between Insurers
We get it. Sometimes you just need a new home insurance company.
Perhaps your current insurer no longer offers reliable customer services, or their policy doesn’t give your home adequate coverage.
However, don’t make switching between insurers a habit. When you stick with one insurer, you have a company that understands your home coverage needs, and you enhance your chances of qualifying for loyalty programs.
And you know what loyalty programs mean? Great discounts!
Disaster-Proof Your Home
A home that is not resistant to the elements is at a greater risk of sustaining extensive damage. And because insurance companies know they stand to lose the most should the property suffer damage, they’ll slap owners with hefty premiums.
Disaster-proofing not only makes your home safer but also keeps your money from flying out to insurance companies.
And while it might not be possible to fully disaster-proof your home, there are steps you can take to make it more resistant to disasters. For example, you can add storm shutters and reinforce your roof with stronger framing.
It’s also advisable to ask your insurance company about the kind of reinforcements they like to see in homes in disaster-prone areas.
Improve Home Security
Even though property crime rates are on the decline, over 2.5 million burglaries are still reported every year.
Have you taken any measures to burglar-proof your home?
Installing an alarm system, for example, goes a long way in deterring potential break-ins (the likelihood of a home without an alarm system being burglarized is a whopping 300 percent). It’ll also help you secure a cheaper homeowners insurance policy.
Other security features you can install to get discounts include smoke detectors, deadbolt locks, and a sprinkler system.
Go Easy on the Claims
When you have home insurance, the temptation to file a claim at the slightest opportunity is always there.
But did you know your claims history affects your insurance score? The more claims you file, the higher your premiums will get.
So before you file a claim for minor roof or driveway repair, it might be in your best interest to pay for it out of pocket.
That’s How to Save Money on Homeowners Insurance
Homeownership is a beautiful experience. However, the rising increasing insurance costs can put a damper on your experience.
Lucky for you, we’ve given you a lowdown on how to save money on homeowners insurance. Put the tips to practice and watch your premiums go down.
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