Insurance

5 Ways to Lower the High Cost of Homeowner’s Insurance

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Whether the home you live in is a humble cottage, a sprawling mansion, or something in between, you need to take steps to protect your investment, and that starts with a robust homeowner’s insurance policy. Protecting the roof over your head with a policy that covers the replacement cost of rebuilding or repairing your home is an essential part of being a responsible homeowner, but getting the coverage you need is not always inexpensive.

If you want to protect your home and still have money left over for other essentials, you need to look for ways to reduce the high cost of coverage. Here are five proactive measures that will reduce the high cost of covering your home.

#1. Combine Your Coverage Options

If you own a home and a car, combining your coverage could save you money on both policies. Combining your automobile insurance and homeowner’s insurance policies could save you 10%, 20% or even more on both policies, and that could mean hundreds of extra dollars in your pocket.

The best way to get started with this simple money saving strategy is with a simple phone call or email inquiry. Just let the agent or representative know you are interested in combining your coverage, then ask for quotes from the companies providing both your automobile and homeowner’s insurance policy.

#2. Raise Your Deductible

The easiest way to reduce the premiums on your homeowner’s insurance is to accept a higher level of risk. Insurance coverage is all about risk, and the more risk you are willing to take the lower your monthly or annual premiums will be.

If you can raise your deductible, you could save a lot of money on your homeowner’s insurance policy, even without taking any other steps. If you do not think you can afford that higher deductible, just bank the premium savings into a separate account and use those funds to cover any up-front costs you incur.

Keep in mind that filing small dollar claims could cause your future premiums to go up, so accepting a higher deductible and paying for minor repairs out of pocket could be a smart thing to do even without the premium savings. If you are fiscally disciplined, boosting your premium could be the smartest savings strategy of all.

#3. Invest in Home Security and Other Upgrades

You have a vested interest in preventing break-ins and keeping your home and family safe, but you are not the only one. The company that holds your homeowner’s insurance policy also wants your home to stay safe, if only because they do not want to lay out big bucks following a robbery or other security incident.

Most insurance companies provide a financial incentive for policyholders to install home security and other safety-related upgrades. If you are unsure which upgrades will net you the greatest savings, just check with your agent or a company representative.

#4. Shop Around

Simply shopping around could save you hundreds of dollars on your homeowner’s insurance policy. Every insurance provider uses different underwriting criteria, and that can mean vastly differing premiums and quotes.

If you have not shopped around for homeowner’s insurance lately, you may be surprised at how much you can save. All it takes is a phone call or two, and the savings you achieve could make it more than worth your while.

#5. Raise Your Credit Score

Your credit score impacts every aspect of your financial life, including how much you pay to protect your home and car. Many insurance companies will look at your credit report before setting their premiums, and a substandard credit score could mean a higher premium.

There are many reasons to raise your credit score and repair your damaged credit, and saving money on your homeowner’s insurance policy premiums is just one more. From paying down debt to signing up for payment alerts, there are many things you can do to boost your credit score and lower your insurance premiums.

You can also read: It’s Time To Check Up On Your Insurance Policy

The roof over your head is likely to be the biggest single purchase you will ever make, so it just makes sense to protect that investment as thoroughly as you can. Homeowner’s insurance provides that protection, and now that you know how to save, you can get the coverage you need without sacrificing the things you want.

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