While owning a house is a significant milestone, it comes with the recurrent expenses of homeowners insurance. Depending on your choices, the insurance cover could be costing you more than necessary. Here are four tips to help you lower your homeowners insurance.
1. Increase Your Homeowners Insurance Deductibles
The homeowner’s insurance deductible represents the amount of risk you are willing to absorb and pay for before the insurance provider can settle your claim. Higher deductibles can help you save on insurance premiums since you’ll have to pay more when filing loss claims.
While most insurance firms advocate for a minimum deductible of about $500, you can save up to 25% by increasing the deductible to $1,000. However, you need to be realistic and ensure you are in a position to pay the deductible in case you need to file a claim for major repairs.
In addition, higher deductibles can help you avoid filing small claims. Ideally, insurance companies tend to penalize homeowners who file small claims year after year. A long history of unnecessary claims can disqualify you from discounts and hike your premiums.
2. Invest in Home Safety Features and Improvements
Investing in home safety features can qualify you for attractive discounts, thus saving on premiums. Some companies can offer about 5% discounts when you install burglar alarms and smoke detectors. However, you can save up to 20% by installing sophisticated fire and anti-theft systems.
If you live in areas with a high risk of storms and winds, you can benefit by investing in storm-safe windows. Typically, insurers can lower your premiums by 15% when you invest in storm protection features.
If you live in areas prone to storms and high winds, such as coastal regions like Cape Cod, investing in storm-safe windows can be a wise decision. Usually, insurers can cut your premiums by 15% when you have these protective features. For added safety and energy efficiency, consider upgrading to premium windows. This not only strengthens your home against bad weather but can also lead to potential insurance discounts. In certain storm-prone areas, getting your windows replaced can be the safest option. For example, this Cape Cod premium window replacement business offers enhanced durability, providing peace of mind during extreme weather events.
Similarly, roof upgrades can qualify you for up to 35% discounts when you upgrade to an impact-resistant roof.
3. Shop Around Every Few Years
Choosing a legitimate insurance provider with a track record of financial stability and lots of discounts can help you save on homeowners insurance. Notably, the rates for identical home insurance covers can differ from one provider to the next.
It’s prudent to research insurers’ information and history and look at their financial ratings. Make sure to shop around after every two years to ensure your current deal is the best you can get.
Ideally, ensure you have talked to at least three insurance companies before choosing who to work with. When it comes to homeowners insurance, don’t make the mistake of shopping on price alone. Always request the policy document to ensure you’re getting the right deal.
4. Bundle Your Home Insurance and Auto Insurance
Buying your insurance policies from one company can help you save significant amounts. For instance, getting your home and auto insurance coverage by the same provider gets you up to 15% in discounts.
However, take your time to ensure that you are paying less than what you’d pay if you bought from separate insurance companies.
While homeowners insurance can be high, there are several strategies to minimize your premiums. Before settling on any insurance company, it’s best to consider several options and choose the best.