How to Save Money on Homeowners Insurance
How much someone pays for homeowners insurance can vary drastically. Things such as location and the size of your home can impact your premiums. However, there are a number of ways you can lower your rates which we’ve listed below.
Increase your deductible
The deductible is how much you’ll pay out-of-pocket for your insurance company to cover your claim. The higher the deductible, the lower the premiums. For example, if you have a $1,000 deductible, you could save an average of 11% a year by increasing it to $2,500. Going for a high deductible might make the most sense. Just keep in mind, this amount still needs to be something you can come up with in a hurry.
Make your home more secure
Even the basics can save you money when it comes to home security. Having a smoke detector, a burglar alarm that rings at the police, or a fire sprinkler system can qualify you for lower rates. Other options to consider are adding storm shutters, reinforcing your roof, and retrofitting your home to make it better able to withstand earthquakes. However, for all these options, find out what kind your insurer recommends and how much it would cost to ensure you’ll actually be saving money. Discounts can start at 5% and go up to 20! You might also earn a discount by upgrading outdated plumbing and electrical systems.
Skip small claims
As a homeowner, you’re likely to run into relatively small problems that you may consider filing a claim for. However, you may save more money in the long run by paying for these expenses out of pocket. This is because filing a claim can raise your rates, meaning you’ll pay more in your annual cost of insurance than the insurer pays for your claim. Additionally, some insurers will give you discounts if you don’t file claims for a certain period of time (usually a few years).
Ask about discounts
Chances are there are some discounts out there you don’t even know you’re eligible for. For instance, retired individuals, who tend to spend more time at home and have increased opportunities for home maintenance, are at a lower risk of burglary and can detect fires earlier. As a result, some companies offer discounts of up to 10 percent to individuals that are 55 years or older who are retired. Many insurers will also provide discounts to those who:
Recently bought a home.
Work in a specific career, such as teaching, firefighting, etc.
Don’t have smokers living in the house.
Choose paperless billing.
Pay the premium with automatic bank payments.
Talk to your agent about discounts you may qualify for!
Bundle your insurance
By using one company for multiple policies, you can expect big savings, varying between 5% and 15%. This includes bundling property, auto, life, business, etc., all without messing up your coverage. Check with your agent to see what options you have for bundling.
Build your credit score
A good credit score & credit history tell your insurance provider you’re responsible, meaning you can qualify for better rates and certain discounts. To maintain good credit, keep your personal finances in check and regularly pay off your credit cards.
Don’t include land
Don’t include land value when deciding how much homeowners insurance to buy. It is not at risk from theft, fires, and other threats like the rest of your house. If you do, you will pay a higher premium than you need.
Still have questions? Centro Hispano is always here to help! Call us today and one of our agents will happily assist you.
