5 Ways to Lower Your Home Insurance Premiums Right Now

Homeowner’s insurance is necessary to protect you should your home ever suffer damage from fire, theft, or other costly incidents. This type of insurance will also protect you if you are found to be liable for injuries suffered by somebody else while on your property. Most mortgage lenders will require in their loan contracts that you maintain home insurance coverage throughout the life of the loan.

As with most insurance policies, homeowner’s insurance can be costly and it certainly is worth the effort to find the best policy for you. A little research and effort on your part can end up saving you hundreds or thousands of dollars each year.

Here are 5 tips to help you cut the costs of your home insurance coverage:

Shop Smart

Your parents, sister, and brother all may use the same insurance agent for their homes but it doesn’t mean you have to follow suit. You should check out the competition and see what kinds of deals are available. Ask at least three other insurance companies for quotes and coverage highlights. You may be surprised to see the differences in quotes. Choose the plan that makes sense for you. Do not judge only by rates. Make sure the whole package meets your needs, including the level of customer service you expect to receive.

Check Your Credit

Insurance companies do monitor credit histories so if you want the best rates, maintain great credit. Some insurance carriers will refuse policies on the highest credit risks.  Monitor your credit report for free using annualcreditreport.com, where you are entitled to a free annual credit report from each of the three major credit bureaus.  There’s probably no need to check your actual credit score, but if you insist I’d recommend going directly to the source at myFico.com.  They also have a nifty free FICO® Credit Score Estimator you can use to estimate what your score might be without having to pay for it.  But yes, they will try to up-sell you.

Combine Your Insurance Needs

If you presently have insurance policies for other needs, like auto and disability insurance, consider transferring them all over to one company and take advantage of the discounts you may be able to get for having multiple policies (I use Allstate). Be sure to inquire what kind of services your homeowners insurance company offers and what kind of discounts are available.

Improvement Discounts

Your insurance agent should be able to provide you with a list of DIY projects you can do around the home to lower your premium costs. Adding a security system for instance, could save a couple of hundred dollars each year. There are many improvements you can make rather inexpensively to lower your payments and improve the value of your own home.

Increase Your Deductible

Discuss with your agent about increasing your deductible amount to something higher but still manageable should something happen. A higher deductible generally lowers the overall amount of the insurance policy.

After you have been in your home for awhile, your financial situation and lifestyle may change. Be sure to review your policy on a yearly basis to ensure you are still paying for coverage you actually need as well as keeping an eye out for possible discounts being offered by your insurance company.