Are There Any Ways to Cut Homeowners Insurance Costs?
In one of our previous blog posts, we shared how college students can save on car insurance. We want to focus on a different group today. Specifically, we want to look at the best ways for homeowners to save on their insurance in 2016 and beyond. Like college students dealing with car insurance, homeowners often feel like they’re trapped paying more than they’d like. The good news for anyone feeling that way is it’s often possible to cut annual homeowners insurance costs in Cincinnati and the surrounding area by hundreds of dollars.
If you’re wondering how you can make that happen, here are six possibilities you’ll want to explore:
1. Compare Multiple Policies
Although this may seem obvious, the reason we put it at the top of our list is we speak to a lot of people who feel pressured to go with one of the first policies they’re presented by various representatives or salespeople. While homeowners insurance is a must, don’t let anyone push you into picking a policy before you’ve had a chance to look at a variety of options.
2. Consider a Higher Deductible
One strategy for reducing your premium is to opt for a higher deductible. As a rule of thumb, $500 is the minimum recommended deductible. But if you can afford to raise that amount to $1,000, it can cut your premium costs by up to 25%. With those types of potential savings, it’s definitely worth crunching the numbers and seeing what makes sense for your specific financial situation.
3. Bundle Insurance Together
Getting your home and auto insurance from the same provider is often a good way to bring down your total costs. However, there are exceptions, so be sure to compare all of your options before committing to one.
4. Upgrade Your Home’s Security
More insurance companies are offering discounts for home security systems. Some insurers offer one discount for basic security and a higher discount for a more sophisticated system. Just keep in mind that systems which fall into the latter category aren’t cheap, so you’ll want to do the math to see what kind of return you’ll get on the upfront investment from the discounted rate.
5. Know Your Insurance Score
Although insurance companies won’t pull your credit score, they do use a similar metric known as an insurance score. This score is calculated from information on your credit report. To protect yourself, be sure to monitor your report on an annual basis (and ideally every 3-6 months) so you can know about any issues like identity theft.
6. Repair or Replace Your Roof
The age of a homeowner’s roof is a significant factor for insurance policies. Insurance companies really don’t want you to use your policy for maintenance issues, which is why they reward homeowners with newer roofs by offering discounts. If your roof is in need of repairs or replacement, taking care of that issue now can help you save over the long-term.
As an independent insurance agency, we’re in the business of getting our clients the coverage they need at the best rates available. So if you want expert help with your homeowners insurance, use our simple online form to get a free quote!