Featured Home Insurance Insurance Mortgage

15 Quick Ways To Lower Homeowners Insurance Costs

Many homeowners pay high premiums on their homes, not knowing how to lower these costs. This article discusses 15 ways you can lower homeowners insurance costs.

  1. Stick with the same Insurance Company

It’s best to stick with one insurer if you love their services because, with time, you may be awarded a special discount for being a loyal policyholder. If you do your research well, you’ll notice that some insurance companies offer a 5% discount on premiums to those clients that have stuck with them for three years or more.

However, always compare your insurance policy prices with other companies periodically to ensure that you reap the benefit.

  1. Review the Limit and Value of Your Insured Possession Once Every Year

Every year, you must review your policy, home, and possession to ensure that you are not covering things you no longer have or have depreciated. For instance, if you make home improvements by reinforcing against storms and adding strong doors and windows, you must renegotiate the cost of your premiums.

If you have a worn-out shed in your compound covered by your policy, consider demolishing it to reduce your premium.

  1. Buy A Home in a Suitable Location

If you buy a home near the fire department or a fire hydrant, the chances of paying lesser premiums are higher. So make sure to visit the area you consider buying a house from and see which nearby facilities. Being near a police station is also a plus since you get prompt response to incase of burglary.

  1. Avoid Habits that May Increase Your Premium

Thousands of accidental fires in homes result from smokers discarding the filter irresponsibly without nipping the fire off. So, if you manage to stop smoking, your homeowner’s insurance policy provider will give you a discount. At the same time, you should avoid keeping violent dogs that are likely to attack neighbors.

This is because most insurance companies have a list of dog breeds that will increase your homeowner’s insurance premium. Some insurance companies may even reject your application because of your dog breed.

Although having a family-friendly dog breed won’t minimize your insurance costs, the chances of hiking the expenses are lesser. So before keeping any dog pet, ensure that your insurer can cover it.

  1. Discard High-Risk Items

The more risk an item places on your home or family, the higher the insurance cost. So, ensure that you discard all items that are deemed a nuisance by your insurer, even if they are fun for you, such as trampolines, swimming pools, or playground equipment.

The items increase your insurance costs, and by reducing them, you can significantly lower your homeowner’s insurance costs.

  1. File Claims Wisely

If you make any claims, your homeowner’s insurance company may penalize you for being a high-risk customer. This can be done by raising our premiums, and in some rare cases, they may cancel your policy if you rack up too many claims.

This can make you a bad client, which may give you problems down the line if you want to take out a premium with another insurance company. So if the damage to your home is minor and you can pay out of pocket, you don’t need to file a claim.

  1. Do Not Insure the Cost of Land

You need to understand that when a disaster occurs, such as a fire, you will only need to replace your house, not the land. Therefore, when buying homeowners insurance, ensure that your insurer does not include the cost of land. Ensure they only include the cost of rebuilding your home, architect fees, and debris removal.

  1. Lower Flooding Risk

It is estimated that flood damage is the most risk under which claims are filed in the United States. So, if you reside in areas prone to flooding, you can take several steps to lower your homeowners’ insurance costs. These include installing proper flood draining and elevating your house and other utilities several inches above the ground.

However, if you reside in a low-risk area, still advisable to add flood insurance because the world can change anytime, and regions you never thought to be affected are flooded in a minute. You may feel that it’s too high a cost, but in case of flooding, you are well protected.

Note: Homeowners insurance does not cover you from the damage caused by flooding, so ensure that you add flooding insurance to protect yourself against future floods.

Common types of homeowners’ insurance discounts to request

  • Wind mitigation discount
  • Security and fire alarm discount
  • E-policy discount
  • Responsible repair discount
  • Clean claims history discount

Final Thoughts

If you own a home, it’s high time you take homeowners insurance because it would be a shame to lose your investment in case of a fire or natural disaster. And, if you already have one, you can apply the tips above to lower your homeowner’s insurance costs.

You must understand that different company has different requirements, so before settling for a homeowner insurer, do your research read materials on home insurance to understand all the terms used. And don’t look at the price alone when making your decision; check their rating, response time, and the terms and conditions of their policy.

2 of 2Next
Use your ← → (arrow) keys to browse