8 Ways to Lower Your Homeowners Insurance Rates

Homeowners insurance, like many other insurance types, can be incredibly expensive. Fortunately, there are things you can start doing today to lower your monthly rates and save yourself some money.

From shopping around ahead of time to raising your deductible, bundling your policies, and investing in stronger home security measures, let’s look at eight key ways you can start lowering your monthly insurance rate today.

Shop Around

Don’t settle for the first insurance company you find. Make sure you take the time to shop around and weigh your options to ensure you’re getting the best possible deal. You may want to consult consumer guides, online quote services, and even insurance agents who are more familiar with policies and rates. 

Educating yourself as much as you can about different agencies can help you find a policy that fits your budget and your insurance needs, so don’t treat this step lightly.

Raise Your Deductible

A deductible serves as the amount of money you will have to pay against a loss before your insurance company will make any payments on your claim. So, if you have $3,000 of damages for a covered incident and a $500 deductible, you’ll have to pay the full $500 out of pocket before your insurance company will step in and cover the rest. If you can afford to raise your deductible, your regular insurance rate will proportionally decrease, saving you up to 25% per month or an average of 12%, depending on your policy.

Yes, raising your deductible means that you will have to pay more money if you have to deal with any covered damages, but you’ll be saving more money on a monthly basis, so the trade-off may be worth it.

Insure Your Home for Replacement Cost

There are two main ways you can insure your home–for market value or for replacement cost. When you insure it for market value, you’re insuring your structure and all the land it sits on whether you have a small plot or dozens of acres. However, when you insure it for replacement cost, your policy will only cover the costs of rebuilding your home including fees for debris removal, architects, contractors, building supplies, and more.

Remember, your land itself isn’t going to be at risk from storms, fires, or theft in the same way your home is, so don’t worry about paying for a policy that covers it when you could work with alternative coverage that costs you less per month.

Bundle Your Policies

If you have homeowners insurance and a separate auto policy, consider consolidating the two under one provider and one bundled policy. When you group different insurance policies together this way, insurance companies will give you a discount of anywhere from 5% to 15% on your homeowners policy each month. Remember, the more policies you bundle, the greater your potential discount may be.

Make Your Home More Secure

The more exposed you are to risk, the higher your monthly homeowners insurance rate will be. Work to make your home more secure against a range of damages, and you’ll be able to lower your insurance rate. 

For example, if you have older plumbing and electrical systems, consider switching them out for safer, modern options to reduce fire hazards and water damage. Alternatively, you may consider making certain upgrades including adding storm shutters, reinforcing your roof, investing in a quality home security system, having a smoke detector, or even something as simple as adding deadbolt locks.

Contact your local insurance agent to ask which upgrades they would recommend to lower your monthly rates.

Maintain a Good Credit Record

Having a good credit score is essential when it comes to getting the best price on your monthly insurance rate. Make sure you pay your bills on time and keep your credit balances as low as you can, because anything that makes your credit score drop may also increase your rate. Check your credit score regularly to ensure it remains the same or improves and no errors pop up that may result in higher insurance rates each month.

Stay Loyal to Your Insurer

Customer loyalty is incredibly valuable to businesses, and insurance agencies are no exception. If you’ve been with your provider for five, ten, or even twenty-plus years, you may be eligible for significantly reduced rates. Companies may reduce your monthly rate by 10% if you’ve been with them for six years or more.

This doesn’t mean you shouldn’t shop around or compare rates, but it is another factor you may want to consider if you’re thinking about switching.

Ask About Discounts

Once you’ve tried a few of these other methods of reducing your monthly homeowners rate, call up your insurance agent and ask them what additional steps they would recommend you take to get your rate even lower. Retirement rates may be an option for you or remove key high-risk elements from your property you may not have considered before, and your insurance agent should be very familiar with your policy and any agency-specific discounts they may be able to offer you.

Key Takeaways

There are many excellent methods you can try to start lowering your homeowners insurance policy. Perhaps you’ll be able to take advantage of several of these options, or maybe only a couple apply to your situation, but either way, you’ll have the opportunity to get a little bit more wiggle room in your monthly budget once you get your homeowners rates lowered.

For more information on homeowners insurance or how to lower your monthly rates, contact John B. Wright Insurance Agency today!