10 Ways to Save on Your Home Insurance Policy
Having an insurance policy on your home is a must. In fact, your mortgage lender will require it when you apply for a home loan.
But like other types of insurance, your home insurance policy can be a significant added expense that you'll need to budget for. That said, there are ways to keep your policy costs as low as possible.
Read on to discover ways to save on your home insurance policy.
1. Increase Your Deductible
Before you file a claim for coverage, you'll need to pay your policy's deductible. You can pick the size of your deductible when you first take out your insurance policy. The higher your deductible, the lower your premiums will be, and vice versa.
To keep your premiums low, consider increasing your deductible. If you think your chances of having to file a claim are very low, opting for a higher deductible can result in significant savings month after month.
2. Pay Premiums on an Annual Basis
It's common for homeowners to choose monthly insurance premium payments rather than yearly payments. Instead of having to dump one lump sum of money once a year, it seems easier to part with a much smaller amount monthly on a more frequent basis.
But doing so will mean you're paying a bit more by the end of the year. If you switch to paying yearly premiums, you could be saving some money.
3. Install an Alarm System
A home that's secured with an alarm system will typically qualify for a cheaper insurance policy. That's because the risk of filing a claim is significantly reduced from break-ins. Your insurance provider will reward you with a more affordable policy in exchange for this lower risk.
4. Only Get the Coverage You Need
Generally speaking, a more comprehensive insurance policy will be more expensive. When you take out a policy, make sure you only opt for the coverage you need. Adding additional coverage will only make your policy more expensive.
5. Allow the Insurer to Conduct a Credit Check
A credit check is not required to take out an insurance policy, but it could result in cheaper premiums if you have excellent credit. Consider allowing the insurance provider to conduct a credit check, but only if you have very good credit. If so, you'll be considered less of a risk to the insurer and may qualify for a less expensive policy.
6. Don't File Minor Claims
Before filing a claim, consider how much it would cost you out-of-pocket to cover the cost of damages. Insurance companies typically increase their premiums every time you file a claim. So, if you have a small claim, consider not filing it to keep the cost of your policy low.
7. Bundle Insurance Products
Odds are you have insurance policies for more than just your home, such as auto insurance or life insurance. If so, consider bundling all your policies with the same insurer to take advantage of bundle discounts.
8. Inquire About Discounts
Speaking of discounts, your insurer likely offers a variety of discounts for various situations. Common discounts include the following:
Senior discounts
Student discounts
Group/association discounts
Multi-property discounts
Mortgage-free discounts
Non-smoker discounts
Loyalty discounts
New home discounts
If you think you qualify under any of the above, you could save on your policy.
9. Keep Your Home Up-To-Date
Certain parts of your home play a key role in keeping it safe and free from damage and harm. For instance, a roof in good condition will prevent water from seeping into your home and wreaking havoc, but an old roof could make your home vulnerable to water damage.
Keep your home's major components in good condition to reduce the risk of filing a claim and in turn, keep your premiums lower.
10. Shop Around
Take some time to compare insurance policy quotes before making a final decision. Taking just a few minutes to do some homework could save you a bundle.