How to Lower Your Homeowners Insurance Premium in 2024 (Part 2)
Disaster-Proof Your Home
Another great way to lower your premiums is to make your home more resistant to natural disasters. For example:
Storm Shutters: If you live in a hurricane-prone area, installing storm shutters can prevent damage and lower premiums.
Reinforce Your Roof: Strengthening your roof’s structure helps in tornado or hurricane zones.
Earthquake Retrofitting: In earthquake-prone regions, making your home more quake-resistant can mean big discounts.
Insurance companies are willing to reward you for taking these proactive steps because it means they are less likely to have to pay out for damages.
Maintain a Good Credit Score
Surprisingly, your credit score has a lot to do with how much you pay for homeowners insurance. Insurance companies use your credit score to gauge how responsible you are. A higher score often results in a lower premium. Keep your credit score in good shape by paying bills on time, keeping debt low, and monitoring your credit report regularly.
Reduce Risk Factors Around Your Home
The less risk your home presents, the lower your insurance will be. For example, if you have a trampoline or a swimming pool, your premiums might be higher due to the increased liability risk. Consider fencing off your pool or even getting rid of any risky structures altogether if they’re not crucial. A simple cleanup around your property can also help—remove dead trees or trim branches that could fall on your home during a storm.
Avoid Making Small Claims
Insurance is there for emergencies, not for every little repair. Making frequent small claims can lead to an increase in your premiums. Instead, try to cover smaller repairs yourself to keep your claim history clean. Save your claims for major incidents where the costs would be unmanageable without assistance.
Take Advantage of Discounts
Insurance providers often offer various discounts, but not all of them are widely advertised. Some common discounts include:
- Senior Discount: Many insurers offer discounts to retirees because they’re home more often, which reduces the risk of break-ins.
- Claims-Free Discount: If you haven’t filed a claim in several years, you could be eligible for a discount.
- New Home Discount: Newer homes may have modern safety features that qualify for lower premiums.
Contact your insurance provider and ask about all the discounts they offer to make sure you’re not missing out on potential savings.
Loyalty Pays Off – Stay with One Insurer
While shopping around is essential, sometimes sticking with your current insurer can pay off too. Many companies offer loyalty discounts, rewarding customers who stay with them for multiple years. After a few years of being a good customer, you might find that they are willing to lower your rate or give you discounts as a token of appreciation.
Lowering your homeowners insurance premium doesn’t have to be complicated or involve compromising on coverage. By making simple changes—like bundling policies, increasing security, or even raising your deductible—you can significantly reduce your monthly costs. Remember, your home is your sanctuary, and protecting it shouldn’t come with a burdensome price tag. Take some time to assess your current policy, and try a few of these strategies to bring your premium down in 2024.
FAQs
- How much can I save by bundling my homeowners and auto insurance? Bundling your homeowners and auto insurance can save you anywhere from 10% to 25%, depending on the insurer.
- Is raising my deductible always a good idea? Raising your deductible can lower your premium, but make sure you can afford the higher out-of-pocket expense if you need to file a claim.
- Do home improvements affect my insurance premium? Yes, home improvements like adding security systems or reinforcing your roof can lead to discounts on your premium.
- Will switching insurers affect my coverage? Switching insurers won’t affect your coverage if you make sure the new policy matches or exceeds your old one in terms of protection.
- How often should I review my homeowners insurance policy? It’s a good idea to review your policy at least once a year to ensure you’re getting the best rate and that your coverage fits your current needs.