Your home is probably your most valuable — and expensive — asset.
Protecting it with homeowners insurance makes sense, but it can feel like a daunting task. After all, you’re likely paying more than $1,000 a year on homeowners insurance.
You don’t have to pay that much, though. While we can’t simply get rid of homeowners insurance bills, it’s still possible to slash your rates by making a few super simple moves.
1. Get a new homeowners insurance quote
Too often, you “set it and forget it” with homeowners insurance. You might be surprised to learn that you’ve been overpaying for your homeowners policy.
Rather than sticking with the status quo, get a new quote. The good news: It doesn’t need to take a lot of time to get a new homeowners insurance quote.
Use Policygenius to compare offers and save big bucks. With Policygenius, you answer a few questions and are presented with multiple choices for homeowners insurance policies. You can review the quotes quickly and easily and then apply for your new insurance policy with a few simple clicks. It doesn’t take very much time — and you could see ongoing savings.
2. Save 27% by bundling homeowners insurance with other policies
Policygenius points out that the average customer saves 27% when they bundle their homeowners insurance and car insurance with the same company. If you’re looking at an average of $1,083 spent annually on homeowners insurance, that amounts to $292.41 per year!
Not too shabby when you consider what you could do with that extra money. Take a look at your homeowners and car insurance companies. If you aren’t using the same company for both, consider combining.
Use Policygenius to get a bundled quote and see how much you could save.
3. Pay for your policy 12 months at a time
One of the easiest ways to get an additional discount is to pay for your homeowners policy 12 months at a time. When you pay in full and upfront, companies are sometimes willing to knock a little off your cost.
Progressive insurance offers a whole list of discounts — including for paying in full for 12 months. Not only that, but Progressive has a network of providers and partners that offer a variety of discounts and are willing to lower your bills even further.
Review your budget and see if you can make room for one big payment. It’s one of the easiest discounts to get, and it could save you money while improving your monthly cash flow.
4. Raise your deductible
Your deductible is what you pay out of pocket. The more you’re willing to pay out of pocket, the less your homeowners insurance is likely to cost. When you raise your deductible from $500 to $1,000, you could see savings of up to 25%.
Some companies, like Progressive, even offer a single deductible for homeowners and auto insurance when it’s bundled. Combining for a single deductible can make it easier to manage your money and save on your overall insurance costs.
If you raise your deductible, you could save more money on your homeowners policy. One simple trick to make sure you can afford a higher deductible is to make sure your emergency fund can cover the deductible. You’ve been saving up that emergency fund for years, right? Check to see if it’s large enough to cover a higher deductible.
Begin by getting a quote for a bundled policy with Progressive and start saving today.
5. Boost your home’s security
Get peace of mind and save on your homeowners insurance by improving your home’s security.
Some companies, like Lemonade, offer discounts when you beef up security at your home by installing burglar alarms, deadbolts and smoke alarms. That’s right. Making sure you have a working smoke alarm can help reduce your overall homeowners insurance cost.
Lemonade offers low-cost insurance policies while doing good in the world. In fact, the company is actually what’s called a B-Corp., or a social good company. A portion of the premiums that aren’t used for claims is donated to causes you can help choose.
Double-check the cost of these security measures before moving forward, though. Some systems can be expensive, so you want to make sure you’ll recoup the cost associated with installing them.
Find out how much you could save with Lemonade while giving back to good causes.
6. Review your coverage amounts
Are you paying for unnecessary coverage? Have extra riders snuck into your policy?
Take a look at what you’re paying for — and consider whether you actually need it.
You can easily review and change your homeowners insurance coverages using the Lemonade app. Not all insurance companies make it so easy, though. No matter where you’re covered, it’s important to double-check what you’ve got.
Be careful, though. You don’t want to shave off too much coverage and wind up in a bind later. You can speak with a knowledgeable professional to figure out just what you need, so you’re paying a fair price for the insurance.
7. Maintain a good credit history
Finally, some insurance companies take a look at your credit history when providing quotes. A good credit history could mean lower rates on your insurance policies. Take steps to build and maintain a good credit score, and you could reap the benefits of a lower homeowners insurance premium.
Plan ahead with your money, shop around for the best deals, and you might be surprised at how much you can save each year.