Homeowners insurance is something that everyone needs when they own a home. The reason has less to do with your own preferences and more to do with the bank’s requirements, but that doesn’t mean it’s any less important. Like other types of insurance, homeowner’s insurance varies widely from one provider to another, so it’s important to get the best rates possible on your policy.
Just because homeowners insurance is something you have to buy doesn’t mean you can’t find ways to save money on it. Luckily, there are plenty of options for scoring discounts on your insurance and keeping costs down.
Read on for 4 tips to save on your home’s insurance costs.
Modernize Your Home
Bring your home into this century. If you live in an older residence, modernizing your home can save you money on your insurance costs. Upgrading your home with new electrical connections, plumbing connections or heating systems can qualify you for discounts through your insurance company. A lot of people think that newer means more expensive, but that’s not actually true with homes.
Some of the things that may qualify you for a discount include upgrades to heating, cooling, water delivery or structural systems. These types of upgrades make it less likely that your home will be seriously damaged which means less risk of you filing a claim. Insurance companies like less risk, so make sure to let them know of any upgrades you make.
Install a security system
Home security systems are the easiest way to make your home less attractive to burglars. The lower your risk of being robbed, the lower your risk to the insurance company. Installing a home security system, regardless of the brand, will almost always qualify you for a discount. Once the system is installed, make sure to notify your homeowner’s insurance company so they can lower your rates accordingly
Have Good Credit
Like all things in life, your credit score affects your homeowners’ insurance rates. Insurance companies often look at good credit as a sign of a responsible person, one who is unlike to make mistakes that would lead to insurance claims.
For those with good credit, work to keep it. For those with bad credit, work to improve it. Pay down debt, pay your bills on time and keep your credit utilization rate low. These types of behaviors will signal to your insurance company that you’re responsible and that they should lower your rates.
Bundle Insurance Policies
Your insurer has probably already offered this option to you, but bundling home, car and other types of insurance is the easiest way to save on all of them. When shopping for a new homeowners policy, start with your auto insurance company and get a quote from them. The discount for multiple policies may just make them the cheapest insurer on the block. Don’t forget to ask for a discount on your auto policy as well – often you have to apply the multi-policy discount individually to each of your coverages.
Since homeowners insurance is something you have to buy to be a homeowner, make sure you’re getting the best deal you can. After all, you’re looking for something you can carry for 30 years or more, so it’ll really pay off to maximize discounts and minimize premiums.
Do you have any other tips to help our readers lower their homeowners’ insurance policies? Please share them below in the comments.