10 Tips to Lower Your Homeowners Insurance

When buying a first home, people often are overwhelmed by unexpected costs. In addition to the mortgage, there are many other expenses to considers such as property taxes, homeowners association fees, repairs, and homeowners insurance. For homeowners insurance, however, there are some things you can do to reduce your premium.

Whether you’re a new homebuyer or you simply want to find out how you can decrease insurance costs, consider discussing these tips with your personal insurance advisor to reduce your homeowners insurance premium without compromising coverage.

• Increase Your Deductible. A deductible is the amount you pay toward a loss before your insurance company starts paying for a claim. In most cases, the higher your deductible, the lower your premium.
• Bundle Your Insurance Policies. Bundling your insurance policies with one provider could save you on total premium costs.
• Avoid Small Claims. If you handle small or minor damages yourself without making a claim, you may avoid higher premiums in the future.
• Know the Difference Between Your Home and Property. When deciding the amount of homeowners insurance to buy, remember you only need coverage for the house itself, not the property it sits on.
• Reinforce Your Home. Some home improvements that minimize the risk of damage to your home, such as reinforcing the roof, adding storm shutters, and wind-mitigation improvements, can lower your premiums.
• Avoid Unnecessary Coverage. Get with a personal lines advisor to discuss those areas where you may be able to cut back and those where you should retain your current coverage in the event of loss.
• Remove Unnecessary or Unsafe Structures. If you have an old shed or dilapidated garage on your property, remove it to save on insurance costs.
• Enhance Home Security. Most companies offer discounts if you improve your home security with devices such burglar alarms, smoke detectors, and sprinkler systems. Before buying a system, find our if your insurance company offers a discount and what the requirements are.
• Good Credit. Establishing and maintaining good credit can help improve insurance costs. If you’ve had your homeowners insurance for a while and your credit has improved, speak to your personal insurance advisor about reevaluating your policy.
• Pay Annually. Just like many other services, instead of paying monthly with added processing fees, pay on an annual basis, which saves you money in the long run.