Perhaps the biggest investment you will ever make, your home is an asset worth protecting. Insurance transfers the risk of loss from to you the insurance company, and it’s generally required if a mortgage company carries a loan on the property. While it might seem like an expense that simply inflates your monthly house payment, home insurance can save you hundreds of thousands of dollars in the future if your property has been damaged by a covered loss. Thankfully there are ways to lower your premium without compromising your insurance.
Aside from bundling it with your auto policy and getting a multi-policy discount from the same carrier, what are the other ways to help you lower your premium? If you’re looking for tips to save some bucks on this insurance, here are a few strategies that could help you.
- Review coverages and look over for insurance.
If you already have a home insurance policy, you might want to review your coverages and get rid of options that you think are not a good fit for your actual needs. You can talk to your insurance provider or agent to help you evaluate your coverages and decide on what to change in your policy.
Apart from this, you can also look for other insurance providers and compare them to what you currently have. Home insurance is offered by numerous companies. Thus, the premiums often vary from one carrier to another. Shopping around can ensure you are getting the best rate. If asking around is taxing for you, work with insurance agencies that could actually do the shopping for you. These independent companies are working with multiple carriers and can easily compare premiums between insurance providers.
- Increase your deductible.
A deductible is your out-of-pocket responsibility for a covered claim. Increasing the deductible is a simple way to actually lower your premium. This means that you’ll pay more for a claim, but a lower monthly premium. So you have to choose your own battle, save your potential expenses for a claim or save on what you pay monthly? If you choose the latter, you just have to ensure that you can pay off a higher deductible in the event of a claim.
- Get a security system for your home.
Insurers evaluate your property for risk factors and its potential for future claims. Theft is one of the covered perils and common claims for home insurance. And when it comes to insurance, the higher the risk, the higher the premium. Therefore, if you want to reduce your rate, you need to lower your risk factors. One way to do this is to install a security system. This would definitely help you get a lower premium. The more your property is secured, the more you can save on your insurance. Reports state you can reduce your premium up to 20% just by adding a security system. You’ll worry less about the possibility of theft and have an insurance discount at the same time.
- If the roof has been replaced recently, let the carrier know.
Your roof is one of the big-ticket items on your property. Keeping it in good condition does not just increase its value, it can also decrease your home insurance premium. Many insurance companies are strict when it comes to the age and condition of the roof. If it’s too old, your preferred insurer might deny coverage. But if it’s well-maintained, then it could help you lower your home insurance premium. Let your carrier know about the roof conditions and their improvements to ensure you’re getting the lowest possible rate.
- Gated Community, Visible to Neighbor, and Mature Discount
If you live in a gated community, you should inform your insurer right away. Many carriers offer a discount as they will perceive your property to have a lower risk for burglary or vandalism. As mentioned, burglary is one of the common perils for homeowners. If your provider knows you’re in a gated community or has manned entry and exit points then you may be eligible for a discount.
Another factor that may affect your premium is the visibility of your property to the neighborhood. Neighbors look out for one another and this is especially common when it comes to fire or theft. If your property is visible to a neighbor and they see smoke or intruders, they are likely to call emergency services. In the case of a fire, this can often be the difference between a home getting some smoke damage and a home burning to the ground.
Another discount you may not know is available for retirees. Older or retired people statistically file fewer claims on average and therefore get more preferred pricing on their premiums.
While these are just a few ways to save more from your home insurance policy, it is best to speak with a licensed agent to ensure you’re getting the most discounts and the best coverage for your unique circumstances. If you’d like an independent agent to shop for you and your family, Clem Insurance Group is here to help!