Home insurance protects your investment and provides peace of mind. However, it doesn’t have to break the bank. This article explores smart and effective strategies to save money on home insurance without compromising coverage.
From shopping around for the best rates to implementing home security measures, discover practical tips to help you cut costs and safeguard your home.
Raise Your Deductible
Opt for a higher home insurance policy deductible to lower your premium. By increasing the amount you would pay in the event of a claim, you can save money on your monthly premiums. Carefully evaluate the potential savings and ensure you have sufficient funds to cover a larger out-of-pocket expense if necessary.
Improve the Security of Your Home
Basic home security measures like smoke detectors, burglar alarms, and deadbolt locks can save you 5% on insurance. For even bigger savings of 15% to 20%, consider adding a comprehensive sprinkler system and monitored fire and burglar alarms. Prioritizing these simple steps enhances safety and also reduces insurance costs.
Avoid Small Claims
Resist the urge to file minor claims with your insurer, as it can be more advantageous to cover these expenses out of pocket. Many insurance providers offer discounts for maintaining a claim-free record over a few years.
When the damage is minor, the potential rate increases resulting from filing a claim may exceed the payout from the insurer. Carefully evaluate the situation to determine if paying for small expenses yourself is a more cost-effective approach in the long term.
Budget for Home Improvements
By improving your home with features like storm shutters, impact-resistant roofing, and updated plumbing/electrical systems, you can qualify for valuable home insurance discounts. These upgrades enhance your home’s safety and lead to potential savings on your insurance premiums.
Combine Your Car and Home Insurance Policies
Many insurers offer discounts when purchasing multiple policies, although the savings may vary depending on the company. You can save 5% to 15% on your home insurance premium by bundling your auto and home insurance with the same company.
Get Rid of Dangerous Items
Owning items such as trampolines, swimming pools, or playground equipment, which insurers classify as “attractive nuisances,” can lead to higher home insurance premiums. While they may provide enjoyment, they come with the potential for increased insurance costs.
An attractive nuisance is a property feature that may attract children to play, potentially leading to injuries for which you could be liable. Removing such items can reduce the perceived liability risk and save money on your home insurance.
Shop Around
Home insurance rates can vary significantly among companies. Finding the cheapest rate could save you over $1,000 per year. Use online tools or consult an independent agent to compare quotes and switch insurers for savings.
