The cost of homeowners insurance in the United States may be going overboard for you as a homeowner but do not fret as I have come up with seven (7) ways to reduce the cost of homeowners insurance.
We cannot overemphasize the importance of having homeowners insurance and we cannot deny that it may cost you more to get one. Fortunately, there are practical steps you can engage to lessen the cost of your homeowner insurance policy.
Homeowners insurance can be cheaper if you follow any of the following steps I have listed below:
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Pay Higher Deductible
Surprised? I know you would be.
Imagine been told to pay a higher deductible on your insurance policy when the discussion is on how to reduce the cost of homeowners insurance policy. As contradictory as it may seem, paying a higher deductible is one of the best means to reduce the cost of your homeowners insurance policy.
According to the Insurance Information Institute (III), if you were paying a deductible of maybe $200, you could save as much as 20 percent on your policy when you increase your deductible to $400.
By increasing your deductible which is the amount you pay if you have to file a claim, you reduce the premium payable on your policy. By paying a higher deductible, you hold the money you would have paid your insurer instead.
Improve Your Credit Score
This something many insurance companies will not tell you – how that your credit score impacts the amount of premium you will pay on your policy.
Whether your insurance provider tells you or not, in the insurance industry, a credit score has a huge impact on insurance premiums. In most states, a credit-based insurance score is used to determine what your insurance policy rate will be.
If the insurer finds your credit score low, they will impose higher insurance rates on you. If your credit score is low, work on improving it by paying your bills promptly and any other counsel you get from financial consultants before trying to buy homeowners insurance policy.
Bundle Home Insurance and Car Insurance
One very effective means of reducing the cost of your homeowners insurance policy is to bundle it with car insurance. Bundling home insurance and car insurance and purchasing from the same company can save you up to 15 percent on your insurance rate.
Data gotten from the Insurance Information Institute (III) asserts that buying car insurance and home insurance from the same insurance company will help you save between 5 to 15 percent on your insurance premium.
It is important to note that every company has its offerings as regards the bundling of home and car insurance. Notwithstanding, they all give some form of discount when you purchase more than one insurance policy from them.
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Improve Your Home’s Security
A secured home will reduce the cost of homeowners insurance in ways you cannot imagine.
Installing items like deadbolt locks, a sprinkler system, a smoke detector, a burglar alarm, etc. can reduce your home insurance policy by up to 20 percent. These basic items can go a long way in helping to reduce the cost of your homeowners insurance policy.
Keep it Simple
While you are trying to improve the security of your home, ensure you keep things simple. Some things can be cool in the home but they have impacts on the cost of your home insurance policy and if you want to reduce its costs you may have to do away with them.
Having a swimming pool or playground equipment in your home will add to your home insurance premium. You would be reducing the cost of your policy when you do away with these items.
Resolve Minor Issues Yourself
It is not so much of a cool thing to always file claims when minor issues arise. Certain things may go wrong and can be resolved without the help of your insurance provider but the temptation to file a claim may arise – resist it.
Resisting it may look like cheating yourself after all you are entitled to a claim no matter the magnitude of the event but then there are benefits underlying the path of resolving minor issues yourself. Some insurance companies offer discounts on your policy if you have stayed claim-free for a certain period of time.
Compare Homeowners Insurance Quotes
Before you buy a homeowners insurance policy, get as many insurance quotes from as many insurance companies as possible. You would be saving yourself from unnecessary costs by following this simple step.
Homeowners insurance rates differ from one company to another. You can save so much on your insurance policy when diligently search for the cheapest policies from homeowners insurance companies. Nerdwallet believes homeowners can save up to $1,000 and more annually when they buy cheap homeowners insurance policies.
Looking for cheap homeowners insurance policies has been made easy as there are a lot of online resources where you can input your information and get home insurance quotes for free. Even insurance companies allow you to get free insurance quotes from their website.
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Final Thoughts on 7 Ways to Reduce Cost of Homeowners Insurance Policy
While it is true that homeowners insurance can be a burden in terms of cost, it is very much possible to reduce the cost of homeowners insurance and make it affordable.
You do not have to break the bank to be able to afford your home insurance premium rate. With the steps, I have outlined you could get cheap and affordable home insurance cover for your property.