Americans spend an average of $1,083 on home insurance each year. Although some pay almost double this!
So it might be tempting to skip on the home insurance altogether. But if disaster strikes you’ll wish you hadn’t. Home insurance can protect you when the worst happens.
Fortunately, you can help lower your insurance premiums. Want to know more?
Then read on to find out our top tips on how to lower home insurance.
1. Shop Around for Cheap Home Insurance
How much does home insurance cost? Well, there’s no one answer to that. But this also means there are lots of different options available to you.
And thanks to the internet, it’s now easier than ever to compare home insurance deals. So take the time to do this.
There are loads of helpful comparison sites to show you what’s out there. And there’s loads of information on how to buy home insurance.
Use these sites to look at these different choices and find affordable homeowners insurance.
In order to compare different deals, you need to input the kind of insurance you’re looking for. So make sure you have this information ready.
You’ll need to know the value you’re looking to cover. And you should think about the different scenarios you would like to cover as well.
2. How to Lower Home Insurance by Combining Policies
Most of us have more than one type of insurance. This might include life insurance or health insurance.
Make inquiries with your current provider to find out about home insurance discounts when you combine your policies. A lot of providers offer these.
If you have had a policy with them for a while you might also have loyalty credits to use.
You might be able to get a further discount by getting your home insurance policy through your bank. So make sure to check out these options.
3. Invest in Protection
This might feel like it doesn’t save you money. But investing in home protection systems can lower your insurance costs. This is because home protection lowers the likelihood of you having to make a claim.
All homes should have fire and carbon monoxide alarms already. A burglar alarm is an immediate deterrent for thieves. This means it lowers your premiums.
But you might also want to invest in more high-tech systems. These include:
- Low-temperature detectors in appropriate parts of your house
- Water leak detectors
- Cellular back up systems
- Video cameras
If you update your home protection systems, don’t forget to let your insurance company know.
4. Reassess Your Deductible Losses
Your deductibles are the things that you are willing to cover the cost of should you need to make an insurance claim.
The more you’re willing to cover, the less you have to pay on your insurance premium. This is because you’re happy to absorb some of the cost so your insurance company doesn’t have to.
But this doesn’t mean you have to find yourself high and dry when disaster strikes. If you increase your emergency fund alongside your deductibles then you won’t find yourself strapped for cash. It’s a win-win way to reduce your premiums for good.
5. Maintain a Good Credit Score
Having a bad credit score will dramatically affect your premiums. So keep yours in check.
Paying your bills on time and staying out of debt is important for this. But you can also improve your credit score by maintaining a stable balance on your credit card.
If you currently have a credit card that you don’t use, keeping the account open and stable will help your credit score.
So There You Have It
Now you know our top tips on how to lower home insurance costs. Stick by these rules and you’re sure to get a good deal.
And for more tips on managing your finances, check out our blog.