6 Smart Ways To Save Money On Your Home Insurance Policy

Homeowners insurance is a significant investment. From the looks of things, rates are going to become even more considerable in the coming years.

The last decade has seen a nearly 47 percent increase in home insurance rates, according to personal finance website ValuePenguin.

There isn’t much you can do about ever-increasing home insurance rates. However, there are ways that may enable you to pay lower premiums on your homeowners insurance policies.

Here are some smart ways to save on home insurance.

1. Purchase Auto & Home Coverage From The Same Insurer

Home insurance may not be mandatory, but auto insurance is, at least in most US states.

Since you’re going to be buying auto insurance anyway, why not purchase both your auto and home insurance policies from the same insurer? You have a good chance of getting a discount if you buy multiple policies from the same company.

When you bundle your home and auto insurance from the same provider, you will likely get 10% to 20% off your home insurance rate.

2. Keep Claims To A Minimum

It is tempting for a home insurance policyholder to file a claim when your home sustains the slightest of damages during a covered event.

However, filing a claim typically leads to increased home insurance rates. The more frequently you file, the more your insurer will make you pay higher premiums on your home insurance policy.

If the damage is minor and won’t cost you a fortune to fix, you’d be much better off in the long run if you pay for its repair out-of-pocket and forgo filing a small claim.

3. Increase Your Deductible

Without a doubt, raising your deductible—the amount you’re willing to pay when filing a claim, which insurance providers deduct from your claim settlement—also elevates the risk of paying more out of pocket to repair damage to your home.

However, a higher deductible is music to the ears of insurers and makes them more willing to give you better rates. The higher your deductible, the lower your premiums will be.

4. Make Your Home Disaster-resistant

While it’s next to impossible to make your home immune to the effects of disasters, you can make it more resilient.

Find out if your home is in an area where hurricanes, wildfire, hailstorms, and tornadoes tend to occur.

Once you learn which disasters are more likely to hit your home, think about making home improvements that will reduce the damage they could inflict. Discuss the following with your insurance agent and see if they can bag you discounts, and how much:

  • Putting up storm windows or shutters
  • Reinforcing the roof against hail or wind damage
  • Installing an automatic fire sprinkler system
  • Adding fire-resistant landscaping
  • Updating wiring, plumbing, and heating to current building codes

5. It’s Home Insurance, Not Land Insurance

Some homeowners make the mistake of factoring in the value of the land their house stands on when calculating how much insurance they need and end up paying too much for their policy.

Home insurance doesn’t cover your lot, which no covered peril can destroy or damage.

When deciding the amount of coverage you need, you only have to consider how much money it would take to rebuild your home in case of total destruction. The value of your land doesn’t really matter, so don’t include it in your calculations. That way, you get to pay less for home insurance.

6. Do Your Homework

Given how home insurance requires a considerable investment on your part, it’s only right that you shop around for an insurance company that offers the best rates.

Get estimates from several insurers and compare them. You would also do well to check on the financial health of the insurance company you’re eyeing.

These are just some of the things you can do to get lower rates on your home insurance. Try doing some or all of them and see for yourself how much money you’re going to save on your home insurance policy.

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