Ways you can lower your home insurance premiums
Here are some tips on how to achieve lower premiums on your home insurance policy.:
- Raise Your Deductible. A deductible is the amount of money you have to pay toward a loss before your insurance company helps cover the costs. The higher your deductible is, the lower your premium will be.
- Consider Only Rebuilding Costs. The land under your house isn’t at risk from theft, windstorm, fire, and the other perils covered in your homeowner insurance policy. So don’t include its value in deciding how much homeowners’ insurance to buy.
- Maintain an Excellent Credit Rating. Insurers are increasingly using credit information to price homeowners’ insurance policies. Since establishing a solid credit history can cut your insurance costs, pay your bills on time, don’t obtain more credit than you need, check your credit record on a regular basis to be aware of potential fraud issues, and keep your credit balances as low as possible.
- Look for Age or Group Discounts. There are many types of discounts available, depending on your personal circumstances. For example, some companies offer a retirement-age discount, based on the assumption that retired people usually stay at home for longer periods of time and may spot fires sooner, are less likely to be burglarized, and spend more time maintaining their homes. Also, some employers and professional associations administer group insurance programs and negotiate discounts collectively.
- Buy Your Home and Auto Insurance from the Same Insurer. Most companies who provide home and auto insurance coverage will take a percentage off your premium if you buy more than one policy from them.
- Make Your Home Safer. You may be able to save on your premiums by making your home more resistant to windstorms and other natural disasters. You can add storm shutters, reinforce your roof, or upgrade your home to better withstand an earthquake. In addition, consider modernizing your heating, plumbing, and electrical systems to reduce the risk of fire and water damage.
You can also get discounts for having smoke detectors, burglar alarm systems, dead-bolt locks, and a sprinkler system. Some companies offer to cut your premium if you install a burglar alarm that rings at the police station. Before you purchase such a system, however, find out what kind your insurer recommends, how much the device would cost, and how much you’d save on premiums. - Stay with the Same Insurer. If you’ve kept your coverage with a company for several years, you may receive a special discount for being a long-term policyholder. Make sure, however, to periodically compare your price with that of other companies’, to ensure that you’re getting the best deal.
- When Buying a Home, Consider the Building Materials and Location of the Home. Since our area is an earthquake-prone area, look for a wooden-frame house because it is more likely to withstand this type of disaster. You may also pay less for insurance if you buy a house close to a fire hydrant or if your home’s electrical, heating, and plumbing systems are less than 10 years old.
