5 Smart-but-Simple Ways to Lower Your Homeowner’s Insurance

1. Raise your deductible.  This one’s short and simple.  If damage or loss occurs to your home, will you be able to afford a larger deductible?  If so, raising your deductible will lower your premiums.

2. Try for loyalty bonuses and group insurance policies.  Most insurance companies offer a discount to loyal customers.  What does this mean?  If you have been with your insurance company for two-to-three years or more, or if you have both an auto and home insurance policy with that company, you can qualify for a discount.  With so much competition among insurance companies, it’s in your insurance provider’s best interests to get you to sign up with them-- and stay signed up. Your company’s discounts aren’t great?  Shop around.  Check at least five companies to sniff out the lowest rates.

Another easy way to save on your homeowner’s insurance premiums is to sign up for a group policy.  There are several ways to do this.  One is to check with your employer; many companies are part of group policies.  Another is to check with any groups or associations you might be a member of.  Try to think outside the box-- you can get a group discount from some insurance companies for anything from a football fan club, to an old college fraternity, to even a church group.

3. Make your home a safe, secure place.  Beefing up security and making your home a safer place is one of the top ways to lower your homeowner’s insurance; and, as a bonus, it keeps your family safe.  So keep drains and roofing in good repair.  Install smoke detectors, window locks, big heavy dead-bolts, and burglar alarms.

What’s good for your home is good for you-- and great for your insurance premiums.  It might just be worth it to go the extra mile with your home’s security. Consider installing shatter proof windows, or even theft-proof window bars.  Sure, bars are a bit ugly, but they will keep your family safe and substantially lower your premiums.  You’ll also lower your premiums up to 25 percent by installing motion-sensitive lighting and 24-hour monitored security and fire prevention systems. Insurance companies love anything that keeps you safe. Makes them sound almost nice, doesn’t it?

4. Assure your home is insured for the correct amount.  Simple, right?  Funnily enough, this one is easy to miss.  Make sure you home is insured for the replacement value-- not for market value.  This will lower your premiums considerably.  Also check the current value for items in your home; some may have depreciated in value and no longer need to be insured for such a large amount.

5. Renovate to apply modification and construction credits.  Newly built houses are lower-risk to insurance companies, and so have lower insurance rates.  But did you know that renovated homes receive a discount, too?  Homeowner’s insurance companies offer discounts for certain types of renovations and construction done in the home. You may think that an older home may not be eligible for discounts, but look closely.  Anything from new plumbing to a roof repair can qualify you for discounts on your insurance rates. You probably won’t save enough money on your premiums to pay for the renovation in the near term, but it may make needed maintenance or a desired home improvement more worthwhile.

If renovating to earn credits, check with your agent before undertaking any construction to learn how best to obtain a discount.  Also, keep in mind that you may have to hire independent insurance inspectors to obtain many of these discounts.