How to Save Money on Homeowners Insurance Without Sacrificing Coverage

Homeowners insurance can be expensive, but there are ways to save money without sacrificing coverage.

You can qualify for discounts by making home improvements that make your house tougher to damage, such as impact-resistant roofing or storm shutters. You can also save by upgrading old electrical and plumbing systems.

Avoid filing small claims to keep your premium costs low. Insurance providers consider frequent claims a sign of irresponsible homeownership and can increase your rates accordingly.

Check Your Credit

Homeowners insurance Fort Myers, FL can be a costly but necessary expense. Finding ways to save on your premium without sacrificing coverage is essential.

One way to do that is to check your credit. Most insurance companies use a special credit score called an insurance score to determine your risk of filing a claim. It can be a different formula from the credit scores you’re used to seeing when applying for loans.

Many insurance providers also look at other factors, including your payment history, but a good credit score can help you save money on your home insurance. However, some states have banned insurance scores as a factor in setting rates. So, to save on your homeowner’s insurance, ensure you’re paying all your bills on time.

Upgrade Your Home

The cost to replace your home and the value of your belongings can change over time, so getting a replacement estimate every 5 to 10 years is important to ensure your policy is current. You may save on your premium by upgrading outdated features like roof, plumbing and electrical systems.

Boosting your deductible—the amount you pay out of pocket before the insurance kicks in—can also reduce your premium. But only do this if you have the money to pay the higher deductible in case of a claim. Lastly, shopping around can help you find the best rate. But be sure to consider the insurer’s reputation for customer service. A poor experience in the event of a claim can quickly negate any savings you’ve made on your premium.

Boost Your Deductible

Your homeowner’s insurance deductible is the amount you pay out-of-pocket before your insurer starts to cover damage to your home. Typically, the higher your deductible, the lower your premium.

Boosting your deductible to a level you can comfortably afford to pay in case of a claim is an easy way to save on your homeowner’s insurance. Generally, it would help if you chose a deductible of at least $1,000 or more.

You may qualify for discounts on your homeowner’s insurance that you don’t even know about. Doing some research can help you find all the homeowner’s insurance discounts you’re eligible for. That could help you cut costs significantly. For example, you can cut your policy by eliminating a personal umbrella liability or canceling the floater covering expensive jewelry and high-end computers.

Shop Around

With the real estate market in freefall, many people have put off shopping for homeowners insurance. But the right research can pay off. In addition to basic discounts for credit, location, and age, some insurers offer discounted rates for bundled policies, gated communities, deadbolt locks, security systems, and more. You may also qualify for lower rates if you are retired, an association member, or have yet to file a claim in years.

You could also save money by buying a home built to withstand certain disasters, such as a brick house in hurricane-prone areas or a wood frame home in earthquake zones. Raising the deductible is another way to lower costs, but that requires an adequate savings account to cover potential claims. So budget accordingly.

Do Your Homework

You hope you never need homeowners insurance, but it’s worth paying a fair price to protect your home and possessions. You can save big if you do your homework and find ways to cut costs without sacrificing coverage.

Some factors can make a huge difference in your premium cost, like living in a low-crime neighborhood or having a security system or a new roof. Other things, like having a sprinkler system or bundling your policy with auto and life insurance, may also earn you a discount.

The best way to get the most savings from your homeowner’s insurance is to do a comprehensive evaluation yearly and adjust it as necessary. Following the tips above, you can shave off significant money from your annual policy.