9 Tips to Help You Save on Homeowners Insurance

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One of the best ways to save money is by trimming an ongoing, monthly expense. After all, even chopping $5 from a recurring monthly bill will result in saving $60 over the span of a year. Recurring savings really add up.

Homeowner’s insurance is pricey, and you can save hundreds each year if you shop around, compare prices, and aggressively pursue the best quote (while not compromising coverage or value). Here are nine tips to help you save on the cost of homeowners insurance.

1. Do Some Research. Research as many insurers as possible. Check their prices and service reviews. Once you have a few choices then it’s time to get price quotes to see who can save you the most. Don’t forget that some insurers charge different rates, depending on whether you pay monthly or yearly (in one giant lump-sum). If you can prepay your insurance upfront, you might get a discount.

2. Use the Same Insurer. Check with your insurance company to see if they give a discount for buying more than one policy from them. You might be able to save if you buy your home and auto insurance from the same place.

3. Upgrade Home Security. Most insurers offer discounts on homeowner’s insurance if you have certain home security features. Check with them first and if they do, see what they recommend. Upgrades could include alarm systems, sprinkler systems, smoke detectors and carbon monoxide detectors.

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4. Ask First. You simple way to save more on your homeowner’s insurance is to ask the insurer what discounts they offer. You might be able to claim a discount due to your marital status, age, or nonsmoker status. If you’ve recently upgraded your roof, tell your insurance agent — some insurers actually offer discounts or lower rates to homeowners with newer roofs, because there’s a lower likelihood that they’ll try to make a claim.

5. Create an Inventory. Insurance doesn’t serve a purpose if you don’t know what items are in your home. Start an inventory today of your possessions, so you aren’t left guessing what you had. Without an inventory, precious money is wasted when you lose items. Take photographs of your most important possessions, and save your receipts whenever possible. It’s also wise to walk through your house with a videocamera (you can use the one that’s on your phone), capturing video images of everything inside.

6. Raise the Deductible. Save more by raising your deductible. Many homeowners have $1,000 deductibles, but you could raise yours to $2,500 or even all the way to $5,000. Doing so will automatically lower your monthly premium. That money saved can then be placed in your emergency funds or savings account.

7. Establish Good Credit. For some insurers, a good credit report can translate to lower insurance costs for customers. Keep your credit score up by paying your bills before they are due, keeping low credit balances, and only having the amount of credit you need.

8. Prepare for Disaster. Some insurers not only provide a discount for security upgrades but also disaster-proofing upgrades. Ask your insurer today. Storm shutters and certain roofing materials (like metal roofing, instead of asphalt single) may help you get a discount.

9. Stay Together. Sticking with the same insurer for a long period can lead to money savings. Some insurers offer a premium discount to long-term policyholders. Call your agent, remind him that you’ve been with the same company for a long time, and note that you’ve made all your payments on-time. Ask for a loyal-customer discount.

Kennedi writes money advice for women.

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Derek

AUTHOR Derek

My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

11 Comments

  1. These are awesome tips. I will utilize these tips next year when shopping around for homeowners insurance. This is our first year of home ownership. Hoping with the homestead exemption and maybe a lower homeowners insurance, we can pay extra on our mortgage and have it paid it off earlier!
    SavvyFinancialLatina recently posted..Save, Save, Save

  2. I got my home insurance reduced by searching for insurance companies that my employer worked with. By going through them, I was able to get all of my regular discount PLUS the corporate discount. This saved me $50 on my house, and $400 a year on my car insurance.
    Derek recently posted..9 Tips to Help You Save on Homeowners Insurance

    • That’s a great tip, Derek! I didn’t know that some employers have arrangements with (home) insurance companies — my only experience with that has been health insurance. Thanks for sharing that tip! It sounds like people who have employers with homeowner-insurance or car-insurance relationships might be able to save quite a bit!
      Kennedi recently posted..Space-Saving Tip of the Day

  3. I think searching around for different insurance companies is great for every home buyer. Don’t always go for the first insurer you talk to because you never realize what other companies offer.

  4. really clever to raise your deductible, take the money you save from that and put it in a savings account for when you have to pay the deductible. Eventually you can get to the point where you are just saving money. Yes it will take a little bit of time to do but it seem to be a good solution for people who are not having many problems.

    • You’ve got it Johnny. There are many ways to save money, but insurance is typically an area where many people could save the most. It isn’t always fun to dig for those savings, but it’s a great feeling when you find them!

  5. Kennedi, it looks like you have done quite the research of providing really good tips in getting a good and affordable homeowners insurance. I’m pretty sure that’s what all homeowners do whenever they buy a home. As a first time homeowner I too am doing the search of looking for one that would be best for my family and our finances.


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