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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. Just because it’s important doesn’t mean you have to pay extremely high premiums for a good policy. You can find the cheapest home insurance policy by looking for home insurance discounts, considering your deductible options, and comparison shopping. You may discover ways to lower the price of your existing policy, even if you’re a first-time home insurance buyer.

How can I lower my homeowner’s 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 the corner by following a few steps:

1. Compare rates home insurance rates

This recommendation is a bit self-serving, but excellent advice nonetheless. Compare home insurance quotes online with IronPoint. 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. 

Of course, you don’t need to use our platform to compare rates, the important thing is that you take this step. You can 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, selecting the option that brings down your premium but still makes financial sense. 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 a discount called multi-policy. These discounts apply when combining two policies with one carrier. 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 boat insurance, motorcycle, or RV insurance with your home policy. Make sure to ask your agent about bundling.

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 your insurance agent 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 home insurance claim you get put into a group with other people who have had a claim. Unfortunately, the data indicates that those who have a claim will have another. This doesn’t mean you WILL have another, just that it’s more likely you’ll have a second claim.

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 cut back trees and shrubs that are hanging over the home or getting too close to structures. Falling trees can cause significant damage.

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 intrusions from busted pipes or washing machine hoses. Water damage is a leading cause of loss for homeowners.

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. Reviews are good for discovering coverage gaps, like personal article floaters when you have art, firearm, or jewelry. Or, to confirm that you forgot to adjust 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 of a premium and the other on unnecessary out-of-pocket expenses.

While conducting these types of reviews, make sure you don’t drop valuable coverages like personal injury or water backup protection.

7. Upgrade or add security systems

You take your home security seriously, and many insurance companies will offer savings for security alarms, smoke detectors, camera monitoring, or any other safeguard that could mitigate claims. These types of systems not only help you save money on your insurance by avoiding claims, but they also help to keep you, your family, and your 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 your insurance score will be.

9. Minimize “attractive nuisances”

Your homeowner’s 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 in the backyard. In some instances, your insurance company will advise you what mitigation steps you need to purchase insurance, and in others, they may elect to decline the policy.

The bottom line

You’re already wondering about your home insurance costs, this is why you’re looking for ways to find the cheapest home insurance policy. In your quest to find cheaper home insurance, you’ll learn there are many factors, including the type of home and roof, the amount of coverage, and claims history that impacts the rate.

If you want to shop for cheaper homeowner’s insurance, you can contact us, or start a quote online.

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