How To Save Money On Homeowners Insurance

Homeowner insurance is a necessary evil. On the one hand, it helps to save a fortune on major repairs, but on the other, it costs a fortune. That’s why so many people want to know how to save money on homeowners insurance.  

The best way to save money on homeowner insurance is to reduce risk factors and increase your deductible. Avoid high-risk dog breeds and improve home security to reduce how many insurance claims you may make. Boost your credit score, request discounts, and stay loyal to your provider to get a lower insurance premium. 

It also helps to bundle home and auto insurance in one package. Follow along as we highlight the best ways to save money on homeowner insurance. 

How To Reduce Your Homeowners Insurance Rate

1. Pick And Choose Claims

It’s easy to justify contacting your homeowners insurance company about every possible claim. However, the more claims you make, the less likely you are to benefit from a lower rate. Insurance providers often reward people who go a while without making claims.

That’s why you must pick and choose which repairs you want to claim. For example, a small claim that only costs a few hundred dollars may not be worth reporting. Ideally, you should go as long as possible without making claims. Granted, it’s worth making claims over large, expensive problems. 

2. Choose A Bundle

Today, you can get affordable homeowner insurance rates if you bundle your plan. For example, you can often bundle auto insurance with homeowner insurance. This has many benefits, such as only having to deal with one provider for two services. 

Not only does this make communication easier, but you can also typically get better rates. Depending on the provider, you can save up to 15% on your rates. Factors such as claims, credit scores, inflation, and your home’s condition affect the rate. 

3. Increase Your Deductible

While it may seem inconvenient, you can save a fortune on homeowner insurance if you raise your deductible. It costs more at the moment, but you will eventually save money on your premiums for your insurance rate. Some people double how much they put toward their deductible, but that’s not attainable for everyone.

You can even save money on your premium if you increase your deductible by up to 25%. Reach out to your insurance provider if you want to understand how your deductible affects the premium. They may even offer advice to help lower your premium if you’re polite and display good intentions. 

4. Stick With A Provider

Sticking with the same provider for years holds many benefits. Loyal policyholders often get discounts, bonuses, and benefits to make their loyalty worth it. Your rate can decrease by 5% to 10% in some cases if you stick with your provider for even 3 to 6 years. 

Keep in mind that this is only a good idea if you are happy with your insurance provider. However, it’s worth switching to a new provider if your rates continually go up seemingly without explanation.

5. Make Your Home Risk-Free

Insurance companies love risk factors as they can charge much more for premium rates. Risk factors like swimming pools, dangerous trees, and even trampolines can increase your premium. Such risks aren’t worth it if you don’t use them, especially if you can’t afford your premium. 

Even high-risk dog breeds, such as pit bulls, can increase your insurance rate. This typically applies to dogs that are prone to biting people, which often leads to lawsuits and expensive claims. Look into risk factors that your insurance provider charges more for, eliminate them, and contact your provider. 

6. Prioritize Security

Burglary and theft are common homeowner insurance claims that cost homeowners and insurance providers a lot of money. Identify weak points in your home’s security and address them one by one. This includes installing a security system, replacing your locks, and increasing visibility at home.

The more visible your home is from the street, the less likely burglars are to sneak by because of the threat of getting caught. Never leave a spare key anywhere on your porch or in your yard. Have your insurance provider inspect your home to prove you’ve beefed up security. 

7. Boost Your Credit Score

A low credit score can make life difficult in many ways. Boosting your credit score can help lower your homeowner insurance premium rate. Pay off debt and use your credit cards responsibly to maintain a positive credit score. 

Make sure your credit balance is always low. Not only will this lower your insurance rate, but it can also help you qualify for beneficial loans. 

8. Protect Your Home From Disasters

Disaster coverage doesn’t come with most basic homeowner insurance plans. However, modifying your plan to include disaster coverage is quite pricey and hard to justify. You can lower this extra cost if you disaster-proof your home. 

This includes securing your roof, adding storm shutters, and cutting down dangerous trees. You may even need to update your roof, which is expensive, but worth it. Not only can this lower your rate, but it can also make you feel safer at home. 

9. Request Discounts

Many insurance providers offer discounts for safe practices and home upgrades. This includes energy-efficient upgrades and home modifications. However, they don’t necessarily make it obvious that they offer these discounts.

Contact your insurance provider and ask about upgrades that come with insurance benefits. Set some money aside to implement these upgrades to eventually lower your rate. Luckily, many of these benefits also help lower other rates, especially with smart HVAC upgrades. 

10. Switch Providers

Sometimes, it’s simply not worth sticking with the same insurance provider for years. Some providers are stingy with rewards and discounts. Others are simply unwilling to lower rates unless you’ve stuck with them for 6 to 10 years, and that’s not soon enough. 

Today, countless homeowner insurance providers offer great starting rates to homeowners. That’s especially true if your home has few risk factors and you have a great credit score. Look for providers that offer discounts for switching over. 

Summing It Up

You can save money on homeowner insurance if you bundle it with your auto insurance. Secure your roof and install storm shutters to lower your rate and stay safe from disasters. Maintain a positive credit score, increase your deductible, and boost home security to save money on insurance. 

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