6 Ways to Save on Your Homeowners Insurance Policy
When you sign up for your homeowner’s insurance, you may be asked a series of questions, either by the agent or insurance company, to determine which discounts may apply. But come renewal time, there’s no obligation for them to recheck your discounts, so it’s important to stay on top of things to get the best deal possible. Here are six simple ways to save on your policy:
- Carry Multiple Policies with the Same Provider
Insurance companies want your business and are willing to reward you for bundling multiple policies. Buying your Homeowners insurance and Auto insurance from the same company can save you up to 30 percent. Increasingly, insurance companies are throwing Life insurance into the mix, which means you may be able to save even more if you have your Homeowners, Auto and Life policies under one carrier.
- Boost Your Deductible
Depending on the level of risk you’re able to handle, you can save a bundle by simply going with a high-deductible policy. The deductible is the amount you spend out of your own pocket before the insurance kicks in. Instead of going with a $500 or even a $1,000 deductible, homeowners who can afford a big out-of-pocket hit or are willing to gamble, might choose a $10,000 deductible — and they could save as much as 35 percent on monthly premiums.
- Install an Advanced Alarm System
Many people know that fire alarms, carbon monoxide sensors and burglary systems may help cut homeowners insurance premiums. But the discounts can be even greater with today’s more advanced monitoring systems that can report to a central location and alert first responders. Insurers may offer a greater discount because the risks are minimized if your home is being monitored 24 hours a day.
- Be Loyal to your Insurance Company
Insurance companies want you to remain a customer for as long as possible, which is why they might reward your loyalty with less expensive homeowner’s insurance. Most insurance carriers offer some form of loyalty discount, typically in the 5 to 10 percent range. However, with some insurers, loyalty alone won’t yield any savings. You might also need to stay claims-free or maintain multiple policies with the company to receive a discount.
- 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 homeowner’s insurance premiums. Insurance companies check credit reports to gauge whether a customer is likely to cost them in the future. Insurers are willing to charge less if you have good credit. 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 why it pays to shop around and ask questions.
- Disaster-Prep Your Home.
If you live in an area that is prone to natural disasters, such as hurricanes or tornadoes, a little preparation for such an event may help you secure a sizable discount on your homeowner’s insurance. Savings could be as much as 30 percent in some states.
We hope these savings tips can help you lower your homeowner’s insurance rate in no time! For more helpful advice, check out our other blog posts.