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SAVE MONEY ON YOUR HOME INSURANCE (I Saved Over $800!)
Do you want to know how to save money on home insurance? Read this!
I used these exact tips to save over $800 ($827 to be exact) on my home insurance policy with just one phone call!
I admit I wasn’t always checking my homeowner’s insurance premiums every year because it was paid along with my mortgage automatically and I figured if it did go up significantly I would notice (I didn’t!).
After having had a conversation with a few friends about homeowners insurance I decided to log on and check my last renewal notice. I was in shock at the premium compared to what my friends were paying and compared to what it was when I first got the policy.
Keep in mind I’ve never filed any claims and I’ve had the policy over ten years (so much for loyalty discounts)!
I immediately started going over my policy and also noticed I was not covered for a few things that I needed like sump pump coverage if I were to ever have issues with my sump pump.
This prompted me to call my insurance company and go over my policy to find out how I could get my premium lowered as well as add the extra coverage I needed.
I’ll go over the areas we talked about when I called in the tips section below.
Long story short because my current company couldn’t give me much of a discount and couldn’t really explain why it went up so much, I ended up looking for another company.
By going with another company I was able to get better coverage and save over $827 off my premium!
Yes, better coverage! The only major change I made was to up my deductible from $500 to $1000 but even if I kept $500 I would still have saved a ton by doing this. I just felt comfortable with $1000 since I probably wouldn’t file a claim for a $500 issue anyway (that would come out of my emergency fund).
That is up to you but in my case changing companies is really what saved me $827!
Also because I was going through an agent (my car insurance company acts as an agent so I also get my bundle discount) I didn’t have to do anything!
They found the company for me, canceled my old policy, set up my new one, and sent it off to my mortgage company so they could adjust my payments.
Moral of the story? Check your policy each year and don’t be afraid to switch. It’s easier than you think!
Now let’s go over how to save money on your home insurance and what areas to look at and ask about when you call.
8 WAYS TO SAVE MONEY ON HOME INSURANCE
Check out these tips to lower your homeowner’s insurance premium:
1. Choose a Higher Deductible
When you have a claim, your deductible determines how much of the loss you need to cover yourself. The more you agree to cover, the lower your insurance premiums are.
Raising your deductible from $500 to $1000 can save as much as 25% on your premiums.
Not many people would file a claim for $500 anyway because they know that when they do, their rates may increase. That’s another reason for bumping up your deductible.
This is one of the tips I used. I had a $500 deductible and bumped it to $1000.
2. Get a Home Security System
A good home security system can help you save money on your homeowner’s insurance. You may also get a discount if you live in a gated community so ask about that if you do!
One of the ways insurance companies will determine your rates is to assess the amount of risk they take when they issue a policy. If you lower your perceived risk, you can also reduce your rates.
Statistics show that homes with a security system are burglarized less often than homes without them. The insurance companies know this and they may offer you lower rates if you have a good security system or live in a gated community.
Be sure to ask your insurance company what type of system you need to have to qualify. Most likely it would have to be a system that will call the police in case of a robbery. You may also get a bigger discount if you have one that notifies the fire department if you have a fire.
I didn’t qualify for this discount with my security system so don’t worry if you don’t either because you can still save a lot of money with the other tips.
MORE MONEY SAVING RESOURCE YOU’LL LOVE:
- How to do a Home Inventory for Homeowners Insurance
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3. Make Sure You Have the Right Amount of Insurance
You want to save money on home insurance but you also want to make sure you’re covered for a major loss.
Keep in mind that the amount of money you pay for your house isn’t necessarily the same as what it would cost to replace it. For example, if you bought your home for $250,000 and you have a $250,000 insurance policy you may be under or overly insured depending on your circumstances.
Go over this with your agent and make sure you are covered fully. You never want to be underinsured just so you can save a few bucks.
4. Bundle! Are You Taking Advantage of All the Discounts?
If you have more than one type of insurance policy with the same company, you may be eligible for discounts on each policy.
An example would be if you had homeowner’s insurance, auto insurance, and life insurance all with the same company. If that were the case, you would likely be eligible for discounts on each policy.
Most insurance companies offer a number of discounts based on varying criteria. Call your insurance agent and ask if you’re eligible for any discounts.
In my case, I bundle my cars and my homeowner’s insurance together and always have. Some companies also offer a claim-free discount for long term customers who’ve never had to file a claim.
5. Quit Smoking!
Yup! Homes who have smokers in them pay more! This is because smoking in the home puts you at a higher risk for fires.
You also want to have working smoke & fire alarms because they will ask you and may do a home inspection as well to check. Plus they save lives along with carbon monoxide detectors so you will want them anyway.
It also helps if your home is close to a fire hydrant and firehouse. I have a hydrant across the street from my home.
6. Improve Your Credit
A lot of insurance companies will give you an insurance score based on your credit history and credit score. Not all do but keep this in mind when shopping for insurance.
Your credit score can play an important role in the premium you will pay so that is another thing to keep in mind.
7. Get Rid of Your Pet
Ok, I really don’t want you to get rid of your pet but I wanted to mention that having certain pets can lead to higher premiums with some home insurance companies.
I also wanted to mention it because you want to make sure you’re covered if your pet were to hurt someone in your home. Most companies will already provide some liability coverage but may charge more for certain animals or breeds so it’s a good idea to check. There are also companies that may deny you coverage as well so keep that in mind.
Check out this article on How Pets Affect Homeowners Insurance for more information on that.
8. Shop Around!
One of the easiest ways to save money on anything is to do some comparison shopping.
Insurance companies are always competing for your business. Whenever there’s more than one company offering the same product or service, you’ll find price differences. In my case a HUGE difference.
By doing some comparison shopping, it’s easy to find a company that’s offering the coverage you need at the best possible price.
In my case, it took one phone call and less than an hour to save over $800 so definitely time well spent!
A few other factors that may play a factor in your premium include pools, hot tubs, trampolines, pets, and the age of your home and your roof. These are some of the things my insurance agent asked about so yours may too.
Have you tried any of these tips? If not give them a try and then come back and let know how much you saved! I read all the comments 🙂