10 Ways to Lower Home Insurance Rates

Lucy Lazarony
November 3, 2020

Love your house but not the homeowners insurance premium? There are steps you can take to lower that premium and keep more money in your pocket. And many of the steps are easy to take. So do as much as you can to help nudge down your premium. Here is a roundup of 10 different ways to lower home insurance rates.

Shop Around for the Best Deal. Be sure to shop around for homeowners insurance. Don’t just go for the first company you talk to, and don’t let your lender choose one for you. By shopping around you could save hundreds of dollars off your premium. That may mean thousands of dollars a year.

You’ll want to get home insurance quotes from several different insurance companies. SmartFinancial makes it easy to do. Just enter your zip code to get started. Next, answer a few, quick questions and you’ll be comparing home insurance rates near you in no time. SmartFinancial has access to more than 200 insurance companies so you are bound to find the coverage and price that you want.

Choose a Higher Deductible. A deductible is the amount you need to pay before your home insurance company begins to pay for damages to your home or losses when you file a claim. The higher the deductible that you choose, the lower your home insurance premium will be. If you can increase your deductible from $500 to $1000 you could lower your premium by as much as 25 percent. That is a big savings and something you should definitely consider doing if you are comfortable having a higher deductible.

Here’s a tip about deductibles. Put the deductible amount in a small emergency fund. This way the money will be there should you need to make a claim on your homeowners insurance. Otherwise, you’ll have to come up with $1000 if something goes wrong and you have to file a claim.

Use the Same Insurance Company. Got an auto insurance policy and a home insurance policy? Use the same insurance company for both policies and it will save you money. Just how much depends on the insurer and all the factors that determine your rates. An insurance company may take five percent to 15 percent off your home insurance premium. And you also will have the convenience of doing business with one company instead of two. When you bundle, you’ll still want to compare rates with SmartFinancial for auto.

Make Your Home Safer. You may be able to save money on your home insurance premium by adding storm shutters or reinforcing the roof. Modernizing your heating, plumbing and electrical systems will help you cut down the chances of fire or water damage. So let your insurance company know of the changes you have planned and see what kind of discount you will receive for your home insurance premium.

Get a Security System. Adding a smoke detector, burglar alarm and dead-bolts will get you a five percent discount on your home insurance premium. More expensive security systems could bring savings of 15 percent or 20 percent off. But not all security systems are covered. So check with your insurance company for the security systems they recommend.

Keep Good Credit. Insurance companies use consumer credit data to price home insurance policies, and the better your credit the better the deal you’ll get on your home insurance policy. So take good care of your credit. Pay your bills on-time, every month and keep balances low. Both these things will help you maintain good credit. If your credit isn’t great, there are things you can do to fix it. Get current on all past due accounts, pay down debt and pay bills on-time will help improve your credit score.

Be a Long-Time Customer. Being a long-time insurance customer will save you some money too. Some insurance companies will reduce premiums by five percent if you stay with them as a customer for three to five years. The reduction jumps to 10 percent if you are a policyholder for six years or more. So if you have been with your insurance company for a few years be sure to reach out for a discount.

Review Your Policy Limits. You don’t want to spend money for coverage that you don’t need. So review your policy each year and make the needed changes. It could save you money.

Check for Discounts. Does your employer, credit union or professional organization offer discounts on homeowners insurance? Be sure to check. This is an easy way to save money on your home insurance premium.

Pay Your Premium In Full. Rather than making monthly payments for your home insurance premium, make one big annual payment. You’ll pay less for your home insurance premium when you make just one payment a year.

Use these tips to save money on your home insurance premium. Be sure to review your policy every year. What will you change and what will you keep? Discuss changes with your insurance agent if you are unsure. Begin with the declarations page and then turn to the exclusions page. If there are any surprises, be sure to discuss them with your insurance agent. You want the policy to best reflect your needs and for it to be at a good price.

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