3 Ways to Lower Your Homeowners Insurance Costs

Homeowners insurance is an essential aspect of home ownership. It protects you from financial loss in case of damage to your home or belongings, or from liability claims if someone is injured on your property.

If you have a mortgage, and most people do, the bank will require insurance which you will have to pay for.

Homeowners insurance can be expensive, so it’s important to take steps to reduce your costs. Here are three ways to save money on homeowners insurance.

Increase your deductible

The deductible is the amount you pay out of pocket before your insurance kicks in. Usually this figure is several thousand dollars.

Increasing your deductible can lower your insurance premium. A higher deductible lowers the risk to the insurer of small claims and the paperwork they represent, so the monthly cost to you is reduced.

Consider what you can afford to pay in the event of a claim and choose a deductible that makes sense for you.

Shop around

Homeowners insurance rates can vary widely, so it’s important to get quotes from several different insurance companies.

Compare the coverage, deductibles, and premium costs to find the best deal. Make sure you have coverage that matches your actual risk of loss. Too little insurance is not much better than no insurance.

Don’t hesitate to negotiate with your insurance company to lower your premium. They would rather keep you than have to find a new customer to replace you.

Take advantage of discounts

Many insurance companies offer discounts for safety features in your home, such as smoke detectors, security systems, and fire extinguishers.

Installing these features can lower your insurance premium and also help keep your home safe. Often, those discounts are equal to the cost of 24-hour fire monitoring.

You may also be eligible for discounts if you have a good claims history, are a senior citizen, or if your home is in a low-risk area.

Consider as well adding an umbrella policy to your homeowner insurance policy.

Typically these add-on policies are inexpensive and provide up to $1 million in additional liability coverage that extends to your home and your automobiles.