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Do You Need the Cheapest Homeowners Insurance? Here Are 7 Ways to Lower the Costs

The average American considers twenty-eight years old to be the ideal time to buy a first home. That can be a difficult number for many Americans, especially those still struggling to pay off the weight of their student debts.

But it’s not impossible, and many young people are settling into homes around the country. One way to help make this happen is to keep costs around your home as low as possible. Home insurance is prime among these costs.

With the right work ethic and a little bit of research, you can help lower your current policy price or find a cheaper policy elsewhere. There’s no one size fits all method for reducing the cost of homeowners insurance, but the ideas below might just help you find a way to approach yours.

If finding the cheapest homeowners insurance is important to you, read on.

1. Keep Your Credit Score Strong

The law surrounding insurance companies and credit scores vary from state to state across the United States. Most states have laws that allow insurance companies to use applicant’s credit scores to determine policy rates.

Insurance companies use credit scores as a symbol of personal responsibility. Whether you agree with that distinction or not, that’s the situation, and a worse credit score will negatively impact the policy that you’re offered.

If you can keep your credit score strong before applying for homeowner’s insurance, you much more likely to get an affordable rate.

If you obtained your current policy before such credit checks were widespread, it may be worth asking for your policy to be re-rated so as to include a credit check. It may help to lower your premiums.

2. Increase Your Deductible

Offering to pay more sounds like exactly the opposite of what you’re trying to do, but it can help in the long run. Like a good credit score, a higher deductible can convince an insurance company of one’s sense of responsibility.

A deductible, if you don’t know, is the amount of a claim that a homeowner must pay out of pocket. Increasing your deductible could save you anywhere from 5% to 15% off your policy, depending on how much you take on.

Though you’ll need to pay a little more each time you make a claim, it may save you money over a longer period of time.

3. Improve The Safety Of Your Home

One easy way to get brownie points with your insurance company is to make some safety improvements to your home.

Installing smoke detectors, fire extinguishers, backup generators, and other such items can prompt your insurance company to offer you a discount. Most insurance companies will also provide discounts for home security systems and other anti-theft measures.

The amount you’re likely to save from these safety improvements will vary from company to company.

4. Consider Bundling Policies

If you’re already in need of some other types of insurance, you may be looking at another opportunity to save.

Many insurance companies offer big savings to consumers that purchase multiple forms of insurance from them. Bundling insurance could get you up to a 25% discount from some companies.

The most common bundle from consumers is the combination of homeowners and auto insurance. But life insurance and other forms of insurance are equally available for bundling.

5. Eliminate Unnecessary Coverage

If it’s been some time since you’ve combed through your policy, it may be time to crack it back open and take a look. The coverage you purchased some years ago may no longer be what you need.

You should always ensure that your coverage is enough to replace the structure and contents of your home. But maybe what you have in your home has changed: take a home inventory and present to your insurance agent.

You may find that you have more coverage than you need. Downsizing your coverage is a great way to save money.

6. Close To Help?

Some insurance companies may provide discounts for things you didn’t even think to mention to them. Proximity to emergency services such as fire hydrants is one of these.

If your home is located directly by a fire station, you can advocate to your insurance company that you’re much more likely to get immediate assistance. They may offer you a discount as a result.

If you don’t have a fire hydrant in front of your home, you can attempt to ask your town to install one off of the closest water mane.

7. Shop Around

It can take you some time and a good amount of work, but it’s worth shopping around for insurance every few years. Sometimes, new firms may offer lower rates in an effort to attract new customers.

In searching for a new insurance company, speak to friends and co-workers about who they have and what their experience has been like. Check consumer guides and research extensively about the reviews and reputations of particular companies.

If you are considering switching insurance companies to get a better rate, always make sure you’re switching to a company that is financially stable. There are a number of insurance rating companies that asses the reliability of insurance companies.

Doing your due diligence in vetting potential insurance companies will pay off in the off-chance an emergency related to your home does arise.

Getting The Cheapest Homeowners Insurance

Home insurance policies can be costly, but they’re essential to have for any responsible homeowner.

Even with insurance costs on the rise, the above tips are great ways to help lower your premiums. Speaking to your insurance agent about the above topics can help save you money and get the cheapest homeowners insurance possible.

Want more ways to help save your hard earned cash? Check out our blog for more essential tips and tricks.