Homeowners Insurance: Practical Tips for Lowering Your Premium

Owning a home is a significant investment with many responsibilities, including obtaining homeowners insurance. While this insurance protects your property and belongings from unforeseen events, it can also add to your monthly expenses. However, there are several strategies you can use to potentially lower your homeowners insurance premium without sacrificing the coverage you need.

Practical Tips for Lowering Your Homeowners Insurance Premium

The following are some tips that may help you reduce your homeowners insurance premiums:

1. Bundle your policies. Combining policies with the same provider can lead to significant savings. Before committing to a bundle, ensure that the combined cost is lower than what you’d pay if you kept the policies separate.
2. Increase your deductible. Your deductible is paid out of pocket before your insurance coverage kicks in. You can lower your premium by choosing a higher deductible. However, ensure you can comfortably afford the increased deductible if you need to make a claim.
3. Improve home security. Enhancing your home’s security measures can make it less risky to insure, leading to potential premium reductions. Installing burglar alarms, smoke detectors, deadbolt locks and even a home security system can demonstrate to insurers that you’re taking steps to protect your property.
4. Stay claim-free. Insurance claims can sometimes lead to higher premiums. While you can’t control every situation, avoid making claims for small, manageable expenses. Save insurance claims for more substantial losses and consider handling minor repairs or replacements out of pocket.
5. Update home features. Updating your home’s features, such as electrical and plumbing, can reduce the risk of accidents and potential insurance claims. Insurers might offer discounts for homes with modern, well-maintained systems.
6. Ask about discounts. Ask your insurance provider about available discounts. These could range from loyalty rewards to discounts for nonsmokers or retirees. Every little bit helps when it comes to lowering your premium.
7. Review and update annually. Your insurance needs and circumstances can change over time. Reviewing your policy annually and making updates as necessary is a good idea. This could involve adjusting coverage limits, removing unnecessary coverage or applying new discounts you might be eligible for.

Remember, while you may want to keep your premium low, you shouldn’t compromise on adequate coverage. Finding the right balance between a reasonable premium and sufficient protection is key. Contact Shelton Insurance today to discuss ways to lower your homeowners insurance premium.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.