Homeowners insurance can be costly even if it may be a required expense. This is why choosing what to prioritize when looking for a policy often leaves people perplexed. This blog will offer you some practical advice on how to cut costs without sacrificing your coverage.
5 Effective Tips for Saving Money on Homeowners Insurance
- Go for a Higher Deductible
In-home insurance, a deductible refers to the amount that policyholders must pay out of pocket before their insurance coverage takes effect. By increasing your deductible, you can significantly lower the cost of your insurance premium. This is because opting for a higher deductible implies accepting a significant share of the financial risk, which insurance providers might reward with a lower premium. However, it is important to note that choosing a higher deductible means being responsible for more of the cost of any damages or losses. Therefore, it’s essential to carefully assess whether you can afford to pay the increased deductible amount in case of a claim.
- Adopt Home Safety Measures
Insurance companies often provide discounts to homeowners who take steps to reduce the risk of theft or damage to their homes. For instance, many insurance companies offer discounts to homeowners with home security systems installed as it reduces the chances of a burglary. Likewise, installing deadbolts or other high-quality locks on your doors can help deter burglars and qualify you for a discount. Always remember to discuss any security upgrades with your insurance company to determine if you are eligible for discounts or reduced premiums.
- Avoid Small Claims
A possible method to decrease your homeowners insurance rate is to avoid submitting claims for minor damages. Insurance providers consider frequent claims as a greater liability, which could lead to increased premiums. Refraining from filing for minor repairs can exhibit responsible homeownership and decrease the likelihood of higher rates. Paying for minor fixes is also more economical than claiming them. However, before opting out of a claim, you should consider the deductible on your policy. If the repair expenses are lower than the deductible, it might not be worthwhile to file a claim.
- Look out for Discounts
Exploring various discounts available is always recommended, even looking out for ones you may need to become more familiar with. Besides the standard values like having multiple policies or setting up a home security system, there are also less common discounts you can inquire about from your insurance provider. For example, living in a gated community may qualify you for discounts from certain insurance companies. It’s crucial to understand that the values available to you can differ depending on your location and the insurance company you are dealing with. So, it’s recommended that you communicate with your insurance agent and ask about any potential discounts that you may be eligible for.
- Increase Your Credit Score
Insurance companies utilize credit scores to assess the risk of providing insurance coverage for a homeowner. A higher credit score typically indicates a lower risk of filing an insurance claim and can result in a reduction in insurance premiums. To improve your credit score, a good starting point is to ensure that your bills are paid on time, decrease your credit card balances, and check for any inaccuracies in your credit report. Demonstrating a responsible borrowing history through a good credit score can help you gain the trust of lenders and insurance companies.
Get a Personalized Homeowners Insurance with Hoffman Brown Company
To ensure that you and your home are well-protected, it is essential to have a comprehensive homeowners insurance policy. Contact us at Hoffman Brown Company today to get a quote, ask questions, and discuss your options. Our agents can find the right insurance plan that meets your needs and gives you peace of mind.
