As most of us already know, buying a home can be pretty costly. Even with smaller homes, you might have to end up taking out a home loan. A home loan would help pay for the upfront costs of purchasing a place to live in. Buying a home also equates to getting homeowners insurance. In short, with so many costs associated with buying a home, it’s time to start looking at how to start saving money on homeowners insurance.
Likewise, it is important when trying to get a home loan that you take out an appropriate HOI policy. A lot of mortgage companies and banks will not approve your loan without proof that you have done so.
The reason why these companies require you to purchase homeowners’ insurance is that it protects you and your home. However, the insurance also protects them from financial loss while you’re paying the remaining amount of your loan or mortgage. Without further ado, here are 6 tips on how to start saving money on homeowners insurance.
How to Start Saving Money on Homeowners Insurance: 6 Helpful Tips
Buying a home can be expensive. On top of that, it is imperative to obtain and maintain homeowners insurance. Here are some things you can do on your end to lower the cost of your homeowner’s insurance.
1) Set up automatic payments to start saving money
If you are looking for ways to save on homeowners insurance, you can do something as simple as setting up automatic payments. The best thing about autopay is that you can set it and not have to worry about it. Just make sure the payment is in your account every month.
There’s a reason why autopay saves money, those include:
- Discounts for Electronic Funds Transfer
- Avoiding payment fees
There’s less effort required by the insurance company when it comes to a collection due to autopay. This simple step can save you as much as 5% on your homeowner’s insurance.
2) Bundle your home and auto insurance to save money
One of the various ways to save on insurance is to bundle your home and auto insurance. Insurance companies that offer more than one type of insurance will reward policy owners with a discount if they get more than one policy with them.
Quite a few companies will let you bundle for a discount such as:
- State Farm
Allstate, for example, provides a 25% discount to their customers who have both a home and auto policy with them. With Esurance, you can save up to 10% by bundling. It is important to do research when considering a bundle. Since you most likely will have to get both of these types of insurance, go for the option that saves you money down the road.
3) Install a home security system
Homeowners insurance exists to protect your property from damage or loss. However, insurance companies also reward homeowners who take additional measures to prevent cases of theft or a break-in from happening. This is a huge reason why installing a home security system can save you money on homeowners insurance. They save money from the lack of theft-related claims and they pass on these savings to you. It’s a win-win for everyone.
4) Install a fire protection system
In the same way that insurance companies give a discount to policy owners who have a home security system, this also applies to policy owners who have a fire protection system installed in their homes. Having certain fire protection items set up in your home can save you money.
Those fire protection items include:
- flame-retardant walls,
- a smoke detector,
- a sprinkler system
All these things make a huge difference when looking for ways to save on your homeowner’s insurance.
5) Disaster-proof your home to improve savings
We all want to live in a world where our homes are free from the effects of disasters like hailstorms, earthquakes and even strong winds from thunderstorms. Unfortunately, such is not the case. However, we do live in a world where homes can be reinforced to prevent extensive damage from such disasters. Installing storm shutters on windows or having hail-resistant roofing materials can go a long way. It can really help to bring down the price of the monthly premiums on your homeowner’s insurance.
Related: 20 Tips For Buying a Home in 2019
6) Maintain a good credit record
Having a good credit score can do wonders for the price of your insurance policy. In other words, it gives the insurance company peace of mind that you can hold up your end of the bargain when it comes to paying off your premiums. Similarly, by staying on top of your credit rating, you can avoid being charged with a higher rate when taking out an insurance policy for your home.
Check on Your Homeowners Insurance Today
When you want to know how to start saving money in certain places, its best to look at the areas that cost you the bulk of it. These are just 6 of the many ways to get a better rate on your home insurance. If you need to know more about how you can save on your policy, it’s always best to get in touch with your insurance agent.
Have you contacted your insurance agent on how you can utilize some of these savings today?
AUTHOR LaTia Longuemire
My name is LaTia Longuemire. I enjoy writing, singing, and cooking in my spare time. My passion is helping others. At this stage in my lifetime, I'm primarily focused on my children. They are everything that keeps my world spinning.