How to Reduce Your Home Insurance Costs

Given that you’ll need to maintain your home insurance plan for as long as you intend to own your home, it’s important that you try to reduce the premium as much as you can to save costs. Here’s a look at some smart ways to lower your home insurance premiums. 

Combine home insurance with other policies: If you need any other insurance coverage (say, an auto insurance plan), check if you can buy the plan from your home insurance provider. Bundling plans like this is the easiest way to save money on premiums. You could, in fact, save up to 20% depending upon the insurer when you do this. 

Increase the deductible in the policy: The deductible is a certain amount of money that you have agreed to pay for every admissible claim under your home insurance policy. Choosing to increase the deductible will decrease the monthly insurance premium. But you should be sure that you can afford an increased deductible and that it won’t eat into your budget adversely if you ever have to raise a claim. 

Install extra safety measures at home: Installing security alarms, smoke detectors, carbon monoxide detectors or extra safe locks at your home can further reduce your insurance premium because all these additional safety measures definitely lower risk factors. 

Look for discounts: If you are retired, or are a member of a certain organization or club, or if you and other members in your home do not smoke, you may qualify for a premium discount. However, most home insurance companies do not advertise their discounts, so ensure you ask if you qualify for any discounts that the company offers when you talk to your insurance agent. 

Pay in advance: You can save on financing and administration charges if you can pay premiums for the whole year in advance. Of course, not everyone will be able to do this and you should ask the insurance company if they allow this. 

Check the condition of the home before buying the plan: Brand new homes are cheaper to insure because all the systems (heating, electrical, and plumbing) are likely to be in excellent condition.

Keep location in mind: Buying a home in a low-crime area, near fire stations, or near regular water sources, can help you save on the premium.