5 ways to save on homeowners insurance

5 Ways to Save on Homeowners Insurance

Although many people buy their homeowner’s insurance policies at the time they purchase their homes, there are good reasons to keep tabs on these types of insurance costs over time. There are ways to save on homeowners insurance. Here are five tips helpful tips for anyone looking to reduce their monthly bill:

How and When to File a Home Insurance Claim piece walks readers through the important decision-making process that homeowners must face when their house is damaged

1. Shop Around for Policies

Independent insurance brokers can help shoppers make sense of policies and their costs. Many policyholders use the same insurance carrier they had when they purchased their home. They may not know what other insurance companies may offer. There actually might be a big difference in premium costs from one agent to the next.

If homeowners are worried that they might be paying too much in insurance premiums, then get insurance quotes from other insurers.

It is important to get the quotes in writing so that the details and costs of the policy are easier to compare with other options. Sometimes people discover that the least expensive choice is the one they have, but it is still good to know for sure.

2. Make Any Necessary Improvements

Homeowners who take steps to prevent fire or water destruction or possible theft of property within their homes are minimizing the insurers’ risk of potential claims. As a result, the insurance carrier may reward the homeowner with decreased premiums. Steps a homeowner can take to minimize property insurance losses include:

• improve security by installing an alarm system
• to prevent or discourage break-ins with inside or outside cameras
• provide fire protection with smoke detectors
• mitigate water damage with proper drainage and gutters

Homeowners should ask their insurance agents about the best projects to consider in their area, as different regions face unique risks.

3. Ask About Discounts

Homeowners who have kept the same policy for several years might qualify for a discount. People who purchase their automobile, home, and life insurance together might also get a lower rate for multiple policies. Some insurers offer unique rates for members of certain organizations.

Homeowners may not know if they are eligible for a discount without asking for them specifically. Sometimes, just inquiring about discounts encourages an insurance agent to discuss options for a reduction in the premium.

4. Maintain a Good Credit Score

In many cases, the credit score of the homeowner may affect the insurance premium they pay. In many states, the insurer can adjust the insurance premium based on the credit score of the insured. However, if an insurer does charge a higher rate because of their credit report, they may be required by the state to tell the homeowner this was the case.

Homeowners might be able to avoid credit score issues with their insurer by obtaining a copy of their credit reports once a year and checking for inaccuracies. Working to maintain a good credit history could help homeowners save money that they would otherwise spend on higher insurance premiums.

5. Evaluate the Terms of the Current Policy

All too often, once the homeowner’s insurance policy is purchased, it is never looked at again. Homeowners should set a reminder to evaluate their coverage at least once a year, to determine if the policy is still providing them with the right protection. They may be surprised to discover that the amount of coverage in the policy is too low (or too high) for what is being insured. With home prices increasing, the amount of insurance coverage should increase as well.

Additionally, there might be opportunities to change the deductibles within the policy. Usually, a higher deductible will result in a lower premium cost.

Saving money on insurance may not be exceptionally difficult for a homeowner, or any other buyer of insurance if they are willing to explore their options. By taking advantage of home improvements, discounts, and a good credit score, homeowners may reduce the premiums they pay for their homeowner’s insurance.