You never want to skimp on homeowners insurance, because your home is likely to be your largest financial investment. But there’s also no need to pay more than necessary! Check out the following eight ways that you might be able to lower your homeowners insurance rates.
Raise your deductible. Your deductible is the amount of damages you must pay before your insurance policy kicks in to cover the rest. If you can keep some money set aside in a savings account, raising your deductible might be a good way to achieve a lower premium. Of course, keep in mind that during a disaster, you will encounter many other unforeseen expenses.
Bundle your policies. If you purchase homeowners and auto insurance coverage from the same company, you may earn a discount.
Renovate your home. If you live in an older home, modernize your heating and electrical systems to reduce the risk of fire. You may also be able to retrofit the house to make it more resistant to earthquake damage. Reinforcing your roof is another popular option. Before investing in home renovations, talk to your insurance company about which upgrades might earn you a discount.
Add a home security system. Installing smoke detectors, burglar alarms, or new locks might earn you a 5 percent discount on your homeowners insurance premiums. Some more sophisticated systems, such as a sprinkler system, could help you get an even larger discount.
Ask about hidden discounts. They aren’t often advertised, but some insurance companies offer discounts to senior citizens. You might also achieve a discount if you’re a member of certain professional organizations.
Maintain a good credit rating. Insurers often use credit scores as an indicator of your risk, and you won’t have to worry about premium hikes for that reason.
Don’t change insurers. While it’s always a good idea to shop around for insurance rates, keep in mind that many companies offer a discount for customer loyalty. If you’ve been with your current insurance provider for several years, ask about this discount – which might be 5 or 10 percent – before switching to another provider.