Your homeowners insurance policy can save you money on major repairs, such as if a tree falls on your roof or your home sustains water damage. But your home insurance costs can add up, too, and you don’t want to overpay for your coverage. Your monthly premiums depend on many factors, and there are several ways to save on your home insurance costs.
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Understanding how to save on homeowners insurance can help you still get the coverage you need while minimizing your premiums. There are several ways to do this.
Many insurance companies offer discounted rates if you bundle two or more policy types together. Bundling your homeowners insurance and car insurance, for example, can help you get lower rates.
While a bundle can lower your rates at one company, it’s important to shop around and make sure that you’re truly getting a good deal. Confirm that your discounted bundle rate isn’t higher than what you would pay for the same insurance coverage from another insurance company.
Review your homeowners insurance coverage annually to verify you’re only buying the coverage you need. For example, your home rebuilding costs impact your policy costs. The rebuilding costs should only cover what it would cost to rebuild your home after a total loss; these costs are likely less than what you paid for your house. If you include the value of the land in your rebuilding costs, you’ll be overpaying for insurance.
If you have insurance on specific items within your home, you may need to adjust these amounts over time. Items like collectibles, jewelry, and appliances change in value over time, so you may need to periodically change your policy coverage.
You might also choose to increase your homeowners insurance deductible. By signing up for a higher deductible, you’ll lower your monthly premiums. Just make sure that you’re prepared to pay that deductible if you ever have to file a claim.
Contact your insurance company to ask about any available discounts that you might qualify for. Common discounts include paperless billing, loyal customer, multi-policy, security system, and claim-free discounts. Multiple discounts can add up to big savings.
This is also a good time to ask about any home improvements you could make to qualify for discounts. Many insurance companies offer discounts for improvements that make your home more weather-resilient, like a new roof or storm shutters and shatterproof glass.
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If you want to know how to save money on homeowners insurance, then it’s important to shop around periodically. Some insurance providers offer discounts to loyal customers, but you may be able to save even more by getting a lower rate for your coverage from another company.
Shop around for insurance at least once a year, but make sure that you’re comparing the same coverage with the same limits. You can get a free homeowners insurance quote today to get started.
Paige Cerulli Paige Cerulli is a freelance content writer and journalist who specializes in personal finance topics. She graduated from Westfield State University and brings more than a decade of professional writing experience to the ConsumerCoverage team. Paige’s work has appeared in outlets including USA Today, Business Insider, and more.
