How to Save Money on Your Homeowner’s Insurance Rates

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save money on homeowners insurance
Homeowners insurance rates can vary by hundreds of dollars depending on a few variables, including your insurance company, deductible, credit score, discounts, and other factors. When shopping for homeowners insurance, it pays to look at multiple factors before buying. Here is some information on how to get the best deal on homeowners insurance or other…

Homeowners insurance rates can vary by hundreds of dollars depending on a few variables, including your insurance company, deductible, credit score, discounts, and other factors.

When shopping for homeowners insurance, it pays to look at multiple factors before buying.

Here is some information on how to get the best deal on homeowners insurance or other insurance rates.

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10 Ways to Save Money on Homeowner’s Insurance Rates

Below is a quick list of 10 ways you can save on your homeowner’s insurance.

1. Shop Around for Better Insurance Rates

The easiest way to save money on your insurance rates is to shop around for a company that will give you a better deal.

Just be sure that you are comparing the same level of coverage when you compare insurance prices and that you are dealing with a reputable company.

A good place to investigate insurance companies is with your state insurance regulator’s office or the National Association of Insurance Commissioners (NAIC).

Get multiple quotes at the same time. There are several online companies that will search multiple insurance companies for the best rates, similar to Priceline or Travelocity for travel.

When you request a quote through these companies they will give your homeowner’s insurance rate quotes from several real estate agents and companies – including most of the major companies you are already familiar with.

2. Increase Your Deductible

save money on homeowners insurance

Deductibles are the amount of money you are required to pay toward your claim before your insurance chips in.

A higher deductible will lower your monthly insurance payments. Just make sure you have enough money in your emergency fund to cover your deductible!

3. Combine Your Homeowners and Auto Insurance Policies

Many companies will give you discounts for having multiple accounts with them. You may be able to save anywhere from 5-15% with a multiple policy discount.

4. Loyalty Discounts

Many companies offer loyalty discounts for insuring your home with them for a prolonged period of time. Be sure to ask your insurance company if they offer these discounts.

5. Maintain a Good Credit Record and Credit Score

Your credit score can have a direct effect on your insurance costs. Improving your credit score can lower your insurance costs.

6. Enhance Your Home Security

Most companies will give you a discount on your annual homeowner’s insurance bill with proof of a home security system or enhanced security features.

Additional items home insurers look for include smoke detectors, fire alarms, burglar alarms, deadbolt locks, and sprinkler systems.

7. Make Your House Disaster-Resistant

No home is 100% disaster-proof.

But if you can prove to your homeowner’s insurance company that your home is less likely to suffer catastrophic losses in the event of an emergency, you may receive discounts on your homeowner’s insurance premiums.

Some examples may include storm shutters, stronger roofing, sprinkler systems indoors and outdoors, structural enhancements in earthquake zones and more. Be sure to discuss this with your insurance company for more details.

8. Review Your Insurance Policy Annually

Be sure to reassess your needs and the limitations of your homeowner’s policy on a yearly basis. you may find out that you are paying for more coverage than in necessary, or vice versa.

You want to ensure you have adequate insurance, but that you aren’t paying for more than you need.

Don’t forget to review the riders you may have for special items such as jewelry, artwork, electronics, or other high dollar items.

Also, be aware that many homeowner’s insurance policies do not cover flood insurance.

9. Insure for the Amount to Rebuild Your House, Not What You Paid for Your House

The odds are high that a substantial portion of your home’s purchase price included the land beneath the house.

If your house is destroyed, it will cost less to rebuild the house than it would to purchase the house because you are not paying for the land.

Don’t confuse the price you paid for your house with the cost of rebuilding your house.

The land under your house usually isn’t at risk from some of the major items covered by your homeowner’s insurance, including theft, fire, wind damage, and other damages.

10. Ask for Additional Discounts

Sometimes all you need to do to get a discount is ask. Also look for membership discounts for being a member of a group such as AARP, AAA, military or trade organizations, and other associations or groups.

Bonus tip: Pay your premium upfront. Many insurance companies will give a 5-10% discount for paying your annual bill upfront instead of in monthly installments. It never hurts to ask!



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About Ryan Guina

Ryan Guina is the founder and editor of Cash Money Life. He is a writer, small business owner, and entrepreneur. He served over 6 years on active duty in the USAF and is a current member of the IL Air National Guard.

Ryan started Cash Money Life in 2007 after separating from active duty military service and has been writing about financial, small business, and military benefits topics since then. He also writes about military money topics and military and veterans benefits at The Military Wallet.

Ryan uses Personal Capital to track and manage his finances. Personal Capital is a free software program that allows him to track his net worth, balance his investment portfolio, track his income and expenses, and much more. You can open a free account here.

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  1. Spartan Saving says

    If you live in an area with a high risk of damage from say hurricanes or earthquakes try to go private rather then governmental with your insurance. It’ll most likely be cheaper.

  2. Hank says

    I was disappointed by how little I personally saved on my homeowner’s insurance when I got a home security system. The alarm was pre-built into the new house. The monitoring fee is $35 a month, and I save only 10% off of my insurance premiums (about $45 a year). Not very cost effective

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