Tips to Get the Cheapest Home Insurance Premium

Cheapest Home Insurance

For most of us our home is one of the most significant investments we’ll make. For this reason alone, homeowners insurance is one of the most important insurance policies we’ll buy.

While it is important, you don’t necessarily need to pay extremely high premiums for an excellent policy. You can find the cheapest home insurance policy by looking for discounts, considering your deductible options, and comparison shopping. You may discover ways to lower the price of your existing policy, find a new policy or, if you’re a first-time home insurance buyer, find and inexpensive first policy.

How can I lower my homeowners insurance premium?

With just a little bit of knowledge, you can get on the path to finding the cheapest home insurance premium. In fact, affordable home insurance could be right around by following just a few steps:

1. Compare rates with ComparisonQuote.com

This recommendation is a bit self-serving, but excellent advise nonetheless. We give everyone the power to view the home insurance rates and coverages from our partner insurance companies. In fact, if you like what you see we can match you with a policy uniquely customized to your situation. Try our online comparison quote platform to instantly compare rates from multiple companies. You’ll be able to see the premiums in moments, apples-to-apples and side-by-side.

Of course you don’t need to use our platform to compare rates, the important thing is that you take this step, utilize the other online options to compare premiums and coverage or consider using an insurance agent who can shop your premiums.

2. Increase your deductible

The deductible you select has an impact on the premium you pay. Simply put, the higher your deductible, the lower your insurance premium. However, this also means you will pay more out of pocket in the event of a claim. You only want to make this change if you know you’ll have the available funds to cover the deductible you’ve selected.  Many new home buyers select a deductible of $500 or $1000, but you can save money by bumping that $2,500. This deductible will apply to your property coverages, so make sure you’ve considered all the risks before you make your choice.

If your insurance company offers a choice between a fixed deductible and a percentage of your home policy’s dwelling coverage. Well, selecting the option that brings down your premium makes more sense, but understand that paying a percentage, rather than a fixed deductible, could potentially result in a large out-of-pocket amount in the event of a property claim.

3. Bundle home and car insurance policies

Nearly all multi-line insurance companies offer discounts called, multi-policy, when combine to policies in one account. This is euphemistically called the insurance bundle, and the most popular bundle is home and auto insurance. When you combine homeowners and auto insurance with the same insurance carrier, you could save between 15-20%. But you can get multi-policy discounts for combining a boat, motorcycle, or RV policy with home insurance with some insurance carriers. Make sure to ask you agent about this opportunity to save.

4. Hunt out all the discounts

Just like your car insurance, a home insurance policy will have discounts other than multi-policy. Some of the savings you can get range from the age of your property, gated communities, security systems and loss mitigation devices. In fact, you can even save money based on how you choose to pay your premiums, or receive your policy documents. Make sure you ask you insurance agent if what discounts are available and how you may qualify.

5. Avoid having to file claims

Conventional wisdom says, I bought insurance to pay for claims, why does it go up when I have one? The reality is, when you have a claim you get put into the group of people who have had a claim, and historically the data indicates that those who have a claim will have another. This doesn’t mean you WILL have another, just that probabilities suggest you may.

There are some things you can do to avoid having claims. Primarily, make sure you have a solid home maintenance routine, this includes periodic plumbing, electrical and roof inspections. You should also cutback trees and shrubs that are hanging over the home or getting too close to structures.

You can also invest in mitigation devices like water shut-off values that sense changes in pressure and cut the main value to prevent large water intrusion from busted pipes or burst washing machine hoses.

Good maintenance and being aware of your home’s health will go a long way to keeping you claim free and your home insurance premiums low.  

6. Do annual coverage reviews

This is important for two reasons, saving money on premiums and preventing underinsured opportunities. First, you should do annual or semi-annual coverage reviews with your insurance agent. This allows you to review your coverage and premiums with your insurance agent. For insurance, you may discover you have unnecessary coverage, like personal article floaters when the art, firearm or jewelry is no longer needing insurance. Or, to confirm that you forgot adjusted your coverage to account for any interior or exterior upgrades or improvements you’ve completed. Both of these save you money, one in the form premium and the other on unnecessary out of pocket expenses.

While conducting these types of review, make sure you don’t drop valuable coverages like personal injury or water back-up protection.

7. Upgrade or add security systems

Many insurance companies will offer savings for security alarms, smoke detectors, camera monitoring, or any other safeguard that could deter a claim. This is like the hunt for discounts and avoid claims sections above, but it an important item to call out separately. These types of systems not only help you save money on you insurance by avoiding claims, they also help to keep you, you family, and you personal belongings, especially those precious keepsakes, from fire or theft.

8. Improve your credit/insurance score

While credit-based insurance scoring isn’t done on California policies, it is very common in most states. Your insurance score, uses your credit record to determine your likelihood of filing a claim. Insurance companies use these scores as a predictor of future insurance claims when calculating rates. A good insurance score makes you less of a risk to insurers and could result in a better home insurance rate. Since it’s the information in your credit record that helps develop these insurance scores, it stands to reason that the better you manage your credit the better you insurance score will be.

9. Minimize “attractive nuisances”

Your homeowners insurance company will view your relaxing swimming pool, the fun you have on the trampoline, and the undeniable awesomeness of your treehouse through a decidedly different lens than you and your family. These are commonly referred to as “attractive nuisances” and can be dangerous to visitors, and children. These items simply make liability claims a bit more likely and potentially more severe.

If you have one of these items, you’ll want to mitigate your ability to have a claim. For instance, you need to place a locking gate around the pool, and may need to have a locking gate to the backyard. In some instances, your insurance company will advise you want mitigation steps you need to purchase insurance, and in others they may elect to decline the policy.

How much should my homeowners insurance cost?

In your quest to find the cheapest home insurance, you will frequently wonder what it should cost. In fact, rates vary significantly based on many factors, including type of home and roof, the amount of coverage, and claims history. Your location also influences your price; see the average cost of home insurance and to get a better understanding what you should be paying by state.

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Copyright IronPoint Insurance Services, LLC | California License No. 0G87821 | PO Box 62436, Irvine, CA 92602 | 877.334.7646

IronPoint Insurance Services, LLC is an independent insurance agency licensed (#0G87821) with the California Department of Insurance. We are authorized agents for many A+ rated Arizona, California, Colorado, Nevada and Utah insurance companies. We provide consumers with online, phone, and in-person insurance services through our insurance company relationships.

IronPoint Insurance Services, LLC offers multiple insurance quotes through ComparisonQuote.com to provide consumers several options for their insurance products. We offer auto insurance through Travelers Insurance Companies, Nationwide Insurance, Safeco Insurance, MetLife Auto & Home, and Progressive. We are authorized insurance agents for these companies and do not charge any fees for our services. If an IronPoint insurance agent tries to charge you broker or agency service fees for representing these companies, please contact us immediately.

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