5 Tips for Lowering the Cost of Your Homeowners Insurance

By on January 10, 2018

If your homeowner’s insurance is putting the squeeze on your monthly budget, then perhaps it’s time to review your policy and make practical adjustments to lower costs. Rather than cutting coverage and risk being underinsured here are some tips for improving your policy to get the coverage you need at a price you can afford.

1. Review Your Policy Regularly

It is important to review your policy and assess the value of your home and personal items each year. You may be over-insured if your premium was calculated with a number higher than the current value of homes in the area. Perhaps you have made improvements to reduce your risk, improved your credit score or you’ve retired at the age of 55. There are many factors which go into designing your homeowners insurance policy and it’s up to you to ensure it accurately reflects your current situation.

2. Shop Around For Better Offers

Your company may be raising their rate or another company with the right bundle of options can offer you comprehensive coverage for less. It never hurts to shop around. Get quotes from several other insurers and take into consideration any loyalty or bundle discounts your receive from your current insurer. And consider a company’s financial viability and complaints into account. Then compare prices, convenience and services to ensure you adequate coverage at a fair price.

3. Bundle Your Policies for Budget-Friendly Coverage

Everyone has auto insurance for their family car. You may have purchased special coverage when you bought your property, such as flood, earthquake, wind or mold insurance. Perhaps you live in a storm area or fire zone and needed extended replacement coverage in case you have to rebuild. And hopefully, you took out additional coverage for your valuables. By bundling these separate policies, insurers may be able to cut your premium.

4. Raise your Deductible

Lower your monthly premium payments by raising your deductible if you can afford to put more away in savings. Your deductible is the amount of risk you assume if a claim is made before the insurance company pays the rest. By raising your deductible you are sharing the risk with your insurer, and this gives them an incentive to lower your bill. Protect yourself by placing an amount equal to your deductible into a savings account and don’t touch it – you will want this money to cover your portion of a claim – then reap the benefits of lower premiums.

5. Get Discounts by Making Improvements

Lower your risk by making improvements to the safety of your home. Insurers often give discounts for certain improvements which lower your risk of damage or theft. Installing a new roof, improved electrical, sprinklers, fire detectors, extinguishers, heating-systems, mold treated materials or adding a home security system to protect your valuables may also reduce your calculated risk and offer savings on your insurance bills.

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About Terri A. Kamoto

Senior writer for FSN - Terri is a former financial analyst dedicated to making personal finances, budgeting, investment and insurance advice accessible, up to date and easy to understand. It is hard to find professional advice written in a language someone without a financial background can understand. Terri helps companies synthesize industry lingo and expertise into clear and informative content which builds smarter, financially successful individuals. You can find Terri on !

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