8 Ways to Save Money on Home Insurance

With homeowners insurance premiums on the rise, it’s important to take proactive steps to save money. These include shopping around, taking advantage of discounts and avoiding filing small claims that can drive up rates.

You may also be able to cut costs by making smart home improvements like adding storm shutters or impact-resistant roofing. Bundling your home and auto insurance with the same insurer can also help you save money.

1. Insure Your Home with the Same Company

Homeowners insurance isn’t cheap. It’s important to find a company that provides adequate coverage while keeping costs low. This is why you should compare quotes and take advantage of discounts. It is also a good idea to avoid filing small claims that can raise your premiums.

Insurers are looking for ways to minimize their risks when providing homeowners’ insurance. They consider factors such as the home’s location, construction materials and its value. They also look at the homeowner’s claim history.

Installing smoke detectors and deadbolts can help reduce rates, as well as making renovations that are disaster-resistant. However, it’s best to discuss these changes with your insurer before you make them.

2. Insure Your Home with the Same Company for a Long Time

If you have been with the same company for several years, you can sometimes receive a loyalty discount. However, it is still important to periodically shop around and compare rates with other companies.

Also, before switching providers, check whether your new insurer is covered by a state guaranty fund to protect you in case the insurer goes bankrupt and leaves you unpaid. Similarly, it is a good idea to vet the company to ensure that it offers adequate coverage for your home and possessions.

Other factors that can affect your rate include credit history, claim history, deductible, location, and discounts for security devices. Getting quotes from several providers can help you find the best possible deal on your homeowners insurance policy.

3. Take Advantage of Discounts

Insurance companies offer a variety of discounts to reduce the cost of homeowners insurance. Some examples include a “multi-policy” discount for buying auto and home insurance with the same company, as well as a “claims-free” discount for those who have not filed any claims over a specified period of time.

Making updates or upgrades to your home that make it more resistant to natural disasters and other damage can also help reduce your premium. For example, installing a hurricane-proof roof or updating your electrical, heating and plumbing systems can save you money. In addition, you can get a discount for having smart home devices like smoke detectors, alarms and security systems.

4. Update Your Policy

It’s important to review your policy every year and to make sure it has all the coverage you need. It’s also a great time to talk with your agent about any home improvement projects that could earn you discounts on your insurance, like adding storm shutters or upgrading your plumbing and electrical systems.

You should also update your policy if you’ve made major purchases or added an addition to your house. Additionally, if you have items insured under a floater that has gone down in value since you bought them, you may want to reduce or cancel the floater. This can save you up to 11% a year, according to NerdWallet’s research.

5. Install Security Devices

Insuring your home with a security system can save you money on premiums. This is because thieves are less likely to target homes with alarms.

Insurance companies offer a variety of discounts for installing security devices, including deadbolt locks and home monitoring systems. Some even offer smart-home device kits at a low cost or give them away to their policyholders.

Other security measures, such as removing trampolines and swimming pools, can also save you money on your home insurance. You can also save by raising your deductible or bundling your home and auto policies. Some insurers offer loyalty and payment discounts as well. This can help you lower your premiums without changing providers.

6. Don’t File Small Claims

Homeowners insurance is meant to cover catastrophic losses, but filing small claims can increase your premium by 20% or more. Moreover, a single claim can remain on your record for five years.

Raising your deductible is another way to lower your insurance premium. However, this is only advisable if you have enough money set aside to pay the deductible in the event of an emergency.

You can also save on your homeowners insurance by bundling it with other policies such as auto or life insurance. Additionally, you can lower your rate by removing structures that increase the risk of a loss such as pools or trampolines. These steps, combined with comparing quotes, taking advantage of discounts and re-assessing your policy can help you find the right home insurance for you.

7. Be Prepared for Natural Disasters

There are both pros and cons to prepping for natural disasters. The main benefit is that it improves your family’s chances of survival during a crisis by providing supplies and creating a plan. Prepping also encourages self-reliance and can help you avoid costly mistakes during a stressful time.

Another benefit of prepping is that it can save you money on home insurance by lowering your premium. This is because insurance providers typically charge lower premiums for homes that are better protected from damage. You can improve your home’s protection by adding features like earthquake-resistant foundations, hurricane shutters and storm-proof windows. By doing this, you can potentially save up to 15 percent on your premium.

8. Stay Claims-Free

Some insurance companies offer a loyalty discount, where they will lower your premiums after three to five years of being claims-free. Smoke detectors, security systems and other home safety features can also earn you discounts. In addition, you can save by paying your premium in full instead of in installments and opting for paperless statements.

Although rising property values, high construction costs and natural disaster risks have contributed to an increase in home insurance rates, homeowners can take steps to keep their premiums low. From choosing a higher deductible to installing storm shutters, these strategies will help you avoid steep premium increases. Some of these options may even be tax-deductible.