Your house is already enough of an expense. (Trust us, most of us here at the Graham Insurance Agency are homeowners, so we feel your struggle). The last thing you want is an expensive home insurance policy on top of all your other home-related expenses. But you also want your investment to be protected — so you don’t want a cheap, bare-bones policy that doesn’t properly protect your home.
So you need to find some kind of balance — a thorough policy that protects your home with all applicable discounts and money saving tactics.
And we have helped many of our clients save money with these discounts and money saving tactics, so we want to share them all with you in this article. Below are all the ways you may be able to save premium on your homeowners insurance.
You may have heard about bundling insurance policies before, but you may not know how important it actually is.
Bundling policies is actually the most effective way to save money on your home insurance.
You see, many insurance companies offer incentives for the more business you provide them. By bundling multiple policies (such as homeowners/renters and auto) with the same insurance company, you may be able to save approximately 5-25 % on your policies.
For example, an insurance carrier might offer a 10 percent discount on your auto policy for bundling with home insurance. The home insurance policy would also be eligible for a multi-policy discount, which can vary in percentage depending on the carrier.
Increase your deductible:
If you want to save money on your homeowners insurance, you could consider increasing the deductible.
A deductible is the amount you would have to pay out before an insurance carrier paid you any claim money.
And usually you have a few deductible options for you to choose from.
With home insurance, you can generally choose between $1,000, $2,500 and $5,000.
The higher your deductible, the lower your premium will be.
Of course, if you have a situation resulting in a claim, you will have to pay more out of pocket, but it may make sense for you to take that chance in order to save some money.
Pay via EFT/ACH or pay ahead:
When it comes to insurance, technology could save you some money.
Paying for your insurance through electronic funds transfer (EFT), automated clearing house (ACH), or paying the premium up front can eliminate billing fees.
If you’re comfortable with your payment automatically withdrawing from your bank account each month, or if you can afford to front the entire premium, these methods can save you both time and money.
Switch to paperless billing:
If you get your insurance bills in the mail, opting to have them delivered through email will also save you money on your premium.
Evaluate your possessions:
Believe it or not, reviewing your current home insurance policy and evaluating the value of any possessions on it could save you some money.
Have an old item scheduled on your insurance policy that you feel isn’t worth as much as it used to be? Make sure you’re revising your coverages in case you find you’re insuring things that no longer need it.
Ask your provider about less-common discounts:
While home insurance may not have as many discounts as other types of insurance, there are some you may be able to take advantage of. Depending on your insurance carrier, some of these may include:
- Over 55 discount
- Non-smoking home discount
- Recent purchaser discount
- Early shopper discount
- Home alarm/security system discounts.
Be sure to contact your insurance agent to see if there’s any additional discounts you could be benefitting from.
Shop around for rates:
If you’ve had the same insurance carrier for years and your rates seem to be steadily increasing year after year, it may be a good time to shop around with different carriers.
This is why we always recommend using an independent insurance agency, like us at the Graham Insurance Agency, who can shop several companies for you to make sure you’re always getting the best rate.
Although, shopping around isn’t always the answer. Sometimes sticking with the same carrier is the best choice if they offer price breaks for longtime customers.
Reach out to your agent or insurance company to see what options are available to you.
Pocket some extra insurance money
You deserve a thorough home insurance policy that protects your home and family. But you also deserve the best possible deal on it.
When getting or reviewing your home insurance policy, be sure to discuss all of your savings options with your agent to make sure you are getting everything you deserve.
But don’t just think about your home insurance! While reviewing ways to save on your homeowners insurance, it also may be a good time to review all of your other insurance policies to see if there are any other ways to save.