Insurance Rates

4 Tips For Saving Money On Your Homeowner’s Insurance

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Homeowner’s insurance is a product that nearly all of us are required to purchase when we buy a home. Truth be told, though, even if you didn’t have to, you’d probably want to. For most of us, our home is our most important asset, so protecting it with insurance is critical.

But just because homeowner’s insurance is a product we all agree is essential doesn’t mean we want to pay an arm and a leg for it. Luckily, there are a few ways that you can qualify for discounts on the insurance you carry on your home. Take a look at the tips below for more details:

Modernize your home

One of the most commonly overlooked strategies for saving big bucks on your homeowner’s insurance is modernizing your home. Worse, many people who do make upgrades to their houses don’t think to notify their insurance companies so that they can qualify for discounts!

Any time you update your heating, cooling, water delivery, or structural systems, you may be eligible for savings on your homeowner’s insurance. This is because it’s less likely that your home will be seriously damaged, so the likelihood of the insurance company will have to pay out benefits is lower. Be sure to make your insurer aware of any upgrades you make!

Purchase additional security

Installing a home security system is another great way to get a discount on your home insurance. Again, insurers look at home security systems as a tool that will reduce the chances that they’ll have to pay out in benefits because the chances of your home being broken into are reduced. And if you do purchase a system, again, be sure to let your insurer know.

Have good credit

Achieving and maintaining a good credit score is a great way to get discounts on all types of products, including homeowner’s insurance. Insurance companies look at good credit as a sign of responsibility, and responsible customers are unlikely to make mistakes that would cause the insurer to have to pay out benefits.

If you already have good credit, you should be sure to keep it. If you have bad credit, make improvements by paying down debt, paying your bills on time, and keeping your credit utilization ratio low. If you do these things, the boost to your score will cause you to see lower rates on your homeowner’s insurance.

Bundle your policies

You’ve probably heard this one before, but it bears repeating: bundling your insurance policies with one company is an easy way to save on all of them. So consolidate your homeowner’s, car, and life insurance, and you could end up seeing a substantial reduction in your policy rates.

Homeowner’s insurance is a crucial purchase to make when you buy a house, so be sure you’re getting the best deal you can – after all you’re going to have to carry it for 30 years, so it will pay off in the long run to get good at scoring discounts!

About Lindsay Meredith

Lindsay is a high school teacher and personal finance blogger. She lives, works, and plays in the Washington, D.C. area.

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