Six Ways to Decrease Cost of Home Insurance

1. Carry Multiple Policies with the Same Company: Insurance companies want your business and are willing to reward you for bundling multiple policies. Buying your home insurance and auto insurance from the same company can save you 30% in some instances. Not only will you save money, but you’ll have more consistency in the way claims are handled and how you receive communications.

2. Boost Your Deductable: Depending on the level of risk you’re able to handle, you can save a bundle on your home insurance premiums simply by going with a high-deductible policy. The deductible is the amount you’d have to pay out of your own pocket, before the insurance kicks in.

Instead of going with a $500 or $1,000 deductible, homeowners who can afford a big out-of-pocket hit or are willing to gamble that nothing will happen to their home might choose a $10,000 deductible — and save as much as 35%.

3. Install An Alarm System: Many people know that fire alarms, carbon monoxide sensors and burglary systems help to cut home insurance premiums. The discounts can be even greater with more advanced monitoring systems that report to a central location and alert first responders.

Alarms connected to a central station can cut premiums by an average of 10%. Insurers offer the discount because the risks are minimized if your home is being monitored 24 hours a day.

4. Stay Loyal to Your Insurance Company: Insurance companies want you to remain a customer for as long as possible, which is why loyalty can pay off with cheap home insurance. With some insurers, loyalty alone won’t yield savings. You might also need to stay claims-free or maintain multiple policies with the company. For instance, Farm Bureau Financial Services offers a renewal price break, though only if you bundle home, car and other coverage.

5. Impress Your Insurer with Good Credit: A high credit score can get you more than a favorable interest rate on a car loan or mortgage. It also can result in lower home insurance premiums. Insurance companies check credit reports to gauge whether a customer is likely to cost them in the future.

But what constitutes a good credit score, for insurance purposes? It varies. Each company uses its own calculation to determine how much a credit score will impact premiums, which is another reason it pays to shop around and ask questions. For a married couple, the insurer will take the better of the two credit scores and use that to rate the policy.

6. Disaster Prep Your Home: If you live in an area that is prone to natural disasters, such as hurricanes or tornadoes, a little preparedness may be worth a sizable discount on your home insurance. Savings can be as much as 30% in some states if the home is fortified in accordance with standards set by the Insurance Institute for Business & Home Safety, or IBHS.

Ways the requirements can be met include sealing the roof beneath the shingles and pruning trees away from the home. Make your dwelling storm-ready and enjoy cheap home insurance through discounts that go by different names including a “fortified home discount” and a “windstorm mitigation discount.”

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