If you are looking for ways to trim some of the fat from your monthly budget, your homeowners insurance could be a good place to start your search. While you would not want to eliminate this coverage from your budget altogether, you may be surprised to learn just how easy it can be to lower the cost of this essential coverage. The five tips outlined below can help get you started on the path to lower homeowners insurance premiums today.
Tip #1: Raise Your Deductible
Many people automatically choose the lowest deductible when buying a homeowners insurance policy to try and minimize their future out-of-pocket expenses. However, choosing a policy with a low deductible will typically mean having a higher insurance premium each month. Assuming you do not file an insurance claim very often, these higher premiums can cost you a lot more in the long run than simply choosing a higher deductible.
Tip #2: Bundle Your Insurance Policies
If you carry multiple different types of insurance policies, choosing to bundle these policies can be a very easy way to qualify for a discount on all your insurance needs. This is because many insurance providers offer multi-policy discounts as a way of rewarding loyal customers for purchasing more than one policy through their company. Auto and life insurance policies are some of the most common types of insurance policies that you can easily bundle with your homeowners insurance.
Tip #3: Avoid Filing Small Claims
Each time you file a claim against your homeowners insurance, you are likely to see an increase in your monthly premiums. This is because the more claims you file, the higher the risk will be of you filing another claim in the future. Since insurance companies rely on risk assessments when assigning policy premiums, this increased risk will usually mean increased premiums as well. Consequently, you will often save money in the long run by choosing to cover small losses out of pocket rather than filing an insurance claim.
Tip #4: Install An Alarm System
Just as a higher risk assessment can cause an increase in your premiums, lowering your risk assessment will often result in lower premiums. One very effective way to lower your risk assessment is by choosing to install an alarm system in your home.
Tip #5: Ask About Affiliate Discounts
Some insurance providers will offer discounts to customers with specific affiliations. For example, you may be able to qualify for a discount on your homeowners insurance if you belong to a certain community, religious, or professional organization. Inquiring about these types of discounts with your insurance agent can help to ensure that you are saving every dollar you can on your homeowners insurance.