Generally, the lower your insurance policy deductible (the amount you pay before your insurance takes over) the higher your insurance premium. Raising your policy deductible is a tried and true way of saving money on all types of insurance, including homeowners insurance. For example, raising your deductible from $500 to $1,000 could lower your premium by as much as 25%.3
There’s a good chance your insurance agent warned you about the risks of being under-insured, but he may not have mentioned you can also be over-insured. Under-insured means you don’t have enough insurance to adequately protect your belongings; over-insured means you’re paying for more coverage than you need.
One of the best ways to prevent being over-insured and wasting your hard-earned money is to review your policy annually when it is up for renewal. Check the policy line for line, keeping an eye out for floaters, which is additional insurance for items that aren’t covered in your standard policy, such as jewelry and artwork. If you no longer have the items, or their value has decreased substantially, you might be able to lower your coverage and save money.
If you’re looking to save money on your homeowners’ insurance premium, consolidating various insurance policies could be the answer. Ask your insurance provider what other insurance products they sell, and how much you might save by buying more than one product, such as homeowners and auto. Not only is there a good chance you’ll get a reduced rate on both policies, you’ll also enjoy the convenience of paying just one bill.
Now you have one more reason to review your credit report for accuracy on an annual basis. Believing that a poor credit history correlates to increased insurance risk, it’s common for insurance companies to look at your credit report before quoting you a rate. The good news is, a superior credit history could reward you with lower than average premiums.
As you can see, there are many easy ways to reduce your homeowners’ insurance premium without sacrificing coverage, and as we mentioned a home security system is one of the best. If you’d like to learn more about the many benefits of a home security system, check out our top picks for the best home security systems in the country.