If you feel like you’re paying more for homeowners insurance than you used to, you might be right. Over the past 20 years, these rates have increased over 50% – and U.S. homeowners pay an average of $952 annually, according to NerdWallet, which provides consumers with research and guidance on financial topics.
You want to make sure your home is protected, but you don’t want to pay more than you have to, either. Here are seven things you can do to make sure you get the best deal on homeowners insurance:
Make Sure to Shop Around
Rates can vary dramatically from one company to another – and there are hundreds of different insurers that offer homeowners insurance. If you haven’t researched the market in the past 24 months, it makes sense to shop. Your local independent insurance agent can help, and since they aren’t tied to one insurance company, they can offer you plenty of options.
Increase your deductible
Many policies are written with a $500 deductible, but depending on where you live, you could save 10% or more by increasing your deductible to $1,000. This one change can help significantly reduce or even eliminate your annual premium increase altogether. And some people opt for even higher deductibles, all the way up to $5,000 – but they need to be diligent about keeping funds set aside in case they need to file a claim.
Don’t file small claims
If a homeowners claim would cost less than $1,000, it probably doesn’t make sense to file it. Insurance companies track customer claims, and even a claim of a few hundred dollars could cause a client to miss out on “loss-free” discounts.
Bundle with auto or umbrella insurance
When you buy insurance for your home and car from the same company, you usually get a significant discount on both policies. Other policies, such as umbrella insurance, might qualify, too.
Improve your home security and safety
Deadbolts, burglar alarms, and other security devices are all ways to keep your home safe and potentially lower your insurance costs. For example, an alarm that connects to police, fire, or other monitoring stations can save you as much as 20% on your homeowners premium.
Maintain good credit
In most states, insurers offer discounts to applicants with high credit scores, so keeping a solid credit history can lower your insurance costs. To protect your credit rating, pay your bills on time, keep outstanding balances low, and monitor your credit report regularly.
Review your policy carefully
You likely are eligible for a number of discounts and credits, so make sure you get them! Homeowners often receive discounts for having newer homes, multiple policies with the same company, good credit and a clean claims history. Even your proximity to a fire hydrant might save you money. And if your situation has changed, let your insurer know immediately as you could be eligible for even more discounts.
Conclusion
If you have any questions regarding ways to save money on your home insurance premiums, look to our local Venice home insurance agency. Contact us for a free review of your current policies, and find a policy that fits your specific needs.
