Your home is one of your most valuable assets. And buying home insurance is the best way to protect your investment should the unexpected happen. These include fires, theft, windstorms, and even water damage to your home. Your insurance can help pay for repairing and rebuilding your home after extensive damage. While your insurance premium depends on your home’s location and age, the rates have significantly increased over the past decade, making it expensive for many.
The good news is that there are many great ways to lower your premium and save your out-of-pocket costs. Different insurers offer different rates for their coverage. Comparing homeowners insurance quotes from multiple providers can help you find the best deal on your insurance policy. In addition to comparing the quotes of different insurance providers, here are other great ways that you can lower your homeowner’s insurance costs:
1. Utilize every available discount
One of the best ways to reduce your premiums is by taking advantage of any discounts offered by your insurer. Homeowner’s insurance providers offer a range of discounts to their clients. Some providers could offer you a discount if you paid your yearly premium in full or had your policy for more than a certain number of years.
You could be eligible for insurance discounts if you’ve upgraded your windows or roof recently, made energy-efficient upgrades, or installed fire extinguishers and smoke detectors in your home. Other insurers could discount you for choosing paperless billing or paying your premiums through automatic bank payments. Utilizing any discounts available can help you shave off a significant amount on your premium.
2. Raise Your Deductible
Before your insurer starts to pay a claim, you must first pay your deductible toward the loss. This way, your insurance company pays the balance after subtracting your deductible from the total amount of damage. If your deductible is more than the cost of damage to your home, your insurer won’t pay anything. Hence, increasing your deductibles can help you save on your premium. That’s because you cover a bigger out-of-pocket expense when you file a claim.
Having a higher deductible can prevent you from filing small claims, helping keep your premiums from increasing. That’s because some insurance providers often offer discounts when you don’t file claims for a specific period of time. It’s always crucial to consider the costs of repairs and other things that would make you file a claim when choosing your premium amount. Consult your insurer or agent to know how much your premiums would change if you increase your deductibles.
3. Build your credit score
In some states, insurance companies use your credit score to determine your insurance premium rates. Your credit rating can significantly affect your insurance premium. If you have bad credit, you may pay nearly double for homeowners insurance than someone with excellent credit. That’s because your insurance provider may see you as a financial risk since you’re more likely to file a claim when you have bad credit.
If you have bad credit, building your credit score can help you lower your premiums. You can boost your credit score by reducing your credit card balances, paying your bills on time, and fixing any errors and discrepancies on your credit report.
Despite the increasing insurance costs, there are various ways you can lower your premium. In addition to the above tips, speak to your insurance agent to know other options that can help you reduce your insurance costs. Choose a reputable insurance provider with the best rates and numerous discounts to ensure you save a substantial amount on your insurance policy.