You might be paying more than you have to for homeowners insurance. Making one or more changes might save you hundreds of dollars per year.
Review Your Coverage
Start by going over your current policy and reviewing your coverage. If expensive items have depreciated in value or your child has moved out, you might be paying for a larger amount of personal property coverage than you need.
Homeowners insurance can pay to rebuild your house if it gets destroyed by a covered peril. Customers sometimes make the mistake of selecting a coverage level based on their home’s market value.
The market value of a property considers both the house and the land it sits upon. Even if your house is completely destroyed, you’ll still have the land. You only need enough insurance coverage to pay to rebuild the house.
Raise Your Deductible
If you file a claim for a covered peril, you’ll have to pay a deductible, and the insurance company will pay the remainder of the bill, up to your coverage limit. If you select a higher deductible, you’ll generally pay lower premiums.
Be realistic when choosing a deductible. Select an amount that you’ll be able to pay if you have to.
Bundle Policies
Insurance companies generally offer discounts to customers who purchase two or more policies. Getting your homeowners and auto insurance from the same company might allow you to significantly lower your premiums without making any changes to your coverage limits or deductible.
Shop Around
Comparing quotes can be an easy way to save money. Although insurance companies consider many of the same factors when setting premiums, they don’t necessarily look at them in the same way. If you contact several insurers, they might give you a wide range of quotes for the exact same coverage.
Pay for Repairs Yourself
Homeowners insurance premiums are based, in part, on how many claims you have filed, how frequently you have filed claims and how much the insurance company paid out. In some cases, it can be in your best interest to pay for repairs yourself, even if the damage was caused by a covered peril.
If the cost of repairs isn’t much higher than your deductible, your insurance company will only pay a small amount if you file a claim. It might raise your premiums, though, especially if you’ve filed other claims in the recent past. Paying the entire cost of repairs yourself will cost you more now, but it might save you money in the long run.
Upgrade Your Home
Insurance rates are based on the likelihood that a customer will file a claim. Modifications that make your home safer can make you eligible for a reduction in premiums. Your insurer might lower your rates if you install features like storm shutters or a security system. Contact your insurance company for specific information.
