Homeowners insurance premiums can be expensive. While there are a number of premium price factors you can’t change, such as the size of your house and where it’s located, there are some ways you can lower your premium costs. In fact, according to the Insurance Information Institute, there are a number of ways you can go about reducing your homeowners insurance premiums.
Here are some of the top ways to save a few bunks and still have the homeowners insurance coverage you need:
- Look around. There are plenty of companies out there that offer homeowners insurance. If your state has an insurance department, they can provide you with a list. You can also check the yellow pages, or ask friends and family for referrals. The key here is to be selective: only consider homeowners insurance companies that come recommended, or that have a solid record of good customer service and follow-through.
- Look for a multiple policy discount. Your auto insurer will usually offer a discount if you also purchase your homeowners insurance with them. In fact, you can save as much as 30 percent with some companies just by having more than one insurance product with that company.
- Make changes to your home. Some insurance companies will offer you a discount on your homeowners insurance premiums if your home is more damage resistant. That can include things like storm shutters or a reinforced roof. Homes in areas that are prone to earthquakes may benefit from a retrofitting to make them more resistant. An older home may be eligible for a discount by updating the plumbing or electrical systems. Finally, many homes can get a discount based on home security features like smoke detectors, dead-bolt locks or burglar alarms.
- Keep a good credit rating. Not all insurance companies consider your credit rating, and in some states this is becoming illegal. Still, a bad credit score can affect your premiums in some places.
- Increase your deductible. One way to lower your premium cost, whether its for homeowners insurance or auto insurance, is to raise your deductible. The deductible is the out-of-pocket amount you need to pay when something bad happens before your homeowners insurance kicks in.