6 Ways to Lower Your Homeowners’ Insurance Costs

6 Ways to Lower Your Homeowners’ Insurance Costs

A home insurance policy is a must-have for every homeowner. It protects your home and its content from damages caused by theft, fire, or any other disaster by covering the costs related to these incidents. However, several factors such as your location, coverage limits, etc., may affect the cost of your homeowners’ insurance.

The following are some ways in which you can lower the cost of your homeowners’ insurance policy.

  • Know Your Options

    Before buying a homeowners insurance policy, you must review your options and find out everything there is to know about each policy before settling for one. You can do this by contacting your state insurance department or asking friends or people around you to share information about their homeowners’ insurance. This is because each state has different rates and requirements for coverage. Most importantly, do not focus on the price of a policy alone but also on the quality of services offered by your prospective insurer.

  • Raise Your Deductibles

    A deductible is an amount you need to pay out of pocket to cover the damages before your insurance policy kicks in. Choosing a higher deductible can help you save money on your premiums, thus lowering the cost of insurance.

  • Exclude the cost of the Land

    The value of your house often includes the cost of the land. Therefore, while determining the amount of insurance required to cover the cost of rebuilding your home, you should calculate the cost of your home minus the value of the land. This is because the land on which your house is built will usually not be damaged by natural disasters, theft, or fire. Therefore, you shouldn’t consider its value when deciding how much you want to spend on homeowners insurance.

  • Bundle Multiple Policies by Purchasing Them from the Same Insurer

    If you buy different policies (say auto and home) from the same insurer, it might qualify you for a 5% to 10% discount on your premium. Bunding your policies will often save you money and cost less than purchasing them separately from different companies.

  • Make Your Home Disaster Resistant

    Another way to lower your homeowners’ insurance is by renovating your home and making it more resistant to disaster by reinforcing your roofs or adding storm-resistant shutters. You can also modernize your heating, plumbing, and electrical systems to reduce the risk of fire and water damage. Contact your insurer to find out what steps can be taken to make your home more resistant to potential disasters.

  • Improve Your Home’s Security

    Install security devices such as burglar alarms, smoke detectors, deadbolt locks, or a sophisticated sprinkler system to make your home safer, thus attracting lower premiums from your insurer. Although these systems can be a little expensive, they will reduce the risk of an unpleasant incident occurring in your home and help you save on your premiums.

Other things that can be done to lower homeowners insurance include maintaining a good claim history, staying with the same insurer, and so on. For additional information on how to lower the cost of your homeowners’ insurance, you can contact our experts at 01 Insurance. We are here to help you get the best deal for your home insurance policy.