Carrying a homeowners insurance policy is extremely important in protecting your family and finances. But there are some times we all need to lower our monthly bills in any way we can. Check out the following five ways you can lower your homeowners insurance rates.
Raise your deductible. Your deductible is the amount you must pay toward damages in the event you need to file a claim. The lower your deductible, the higher your premium will be. Your current deductible may be as low as 500 dollars. If you can keep 1,000 dollars or more in a savings account to cover a higher deductible, then raising it can save you money on your monthly premiums.
Improve your credit score. Insurance companies use credit scores as one method of determining your level of risk. A higher credit score can often translate into higher homeowners insurance rates. Monitor your credit rating and take measures to improve it if necessary. As a bonus, you may also earn yourself a break on auto insurance rates or other types of insurance.
Shop around. You do a little comparison shopping when you purchase a new TV; why not do the same with your homeowner insurance? You may be surprised to find that rates can vary significantly from one insurance company to the next. One thing to remember is to be sure you’re comparing rates on the same level of coverage, so that you don’t switch and find yourself under-insured in a disaster.
Consolidate your policies. When you purchase all of your homeowners, auto, life, and other types of insurance from the same provider, you often earn a significant savings on your premiums. Just because one company seems to offer a lower rate on certain types of insurance doesn’t mean that you’ll save money by holding policies with various companies.
Talk to your insurance provider. The best way to earn a break on your homeowners insurance premiums is by simply picking up the phone. Ask your provider if there are improvements you can make to your home, such as making it more windstorm-resistant, fireproofing it, or adding a home security system.
Remember as you make efforts to lower your homeowners insurance rates, that you don’t accidentally end up under-insured. Make sure your policy covers the cost of replacing your home, as well as content, so that you don’t end up in a worse financial position in the event of a disaster.