Homeowner’s insurance is absolutely necessary to protect your home and putting everything you own at risk, try some of these strategies to lower your monthly premiums. These are also good things to keep in mind if you’re house shopping, because you may choose to roll your insurance costs into your mortgage payment.
Increase your deductible. Insurance is meant to cover catastrophic loss, such as a fire, flood, or tornado. It really isn’t meant to cover small damages that occur on a regular basis. Therefore, set your deductibles as high as possible, since the probability of a catastrophic event is really quite low. Just make sure to have a backup way to cover the deductible in the worst case scenario, such as cash in savings or room on a credit card balance.
Don’t make small claims. Since insurance is meant to cover major losses, don’t file small claims. These will drive up your rates.
Location is everything. Obviously, you can’t just pick up your current house and move. But if you’re house shopping, keep location in mind with regard to homeowner’s insurance. Staying away from flood-prone areas or locating close to a fire department can help with the cost of insurance. In earthquake zones, a wooden frame home may be preferable to brick or stone.
Improve home security. Installing protective measures such as smoke detectors, burglar alarms, and deadbolts not only protect your home but also your wallet.
Exclude land will disappear due to fire, theft, or any other event, so you’ll only need to replace the house even in the worst case scenario.