Homeowners insurance is a smart investment to protect the equity you’ve accrued in your home. When you purchase insurance the rates will generally be based on the value of your home. However, there are ways to earn discounts to reduce the cost of your home insurance rate:
Homeowners Insurance and Other Policies
Insurance companies typically reward customers for purchasing multiple policies. By working with one agent to purchase both your home and auto insurance, you’re likely to save money. Ask your agent about adding other insurance policies into a discounted bundle. Purchasing your insurance policies from one company will not only save you money, it will also be more convenient because it’s easier to keep track of your benefits and payment due dates.
Stay with the Same Insurance Company
Just as insurance companies reward customers for selecting multiple policies, they also typically reward customer loyalty. With many companies, you’ll see additional discounts available after you’ve held your policy for a few years. Staying with the same insurance company long term has other benefits as well. You’ll be able to build a relationship with your insurance agent. As your agent gets to know you and your family’s needs, they’ll be better able to serve you.
Demonstrate a History of Good Credit
Most insurance companies will check your credit score to assess your financial history and trustworthiness with financial investments. A good credit score can result in lower insurance premiums. If you’re married, the insurer will usually look at the better of the two credit scores to determine policy costs. Regardless, start working today to improve your credit by paying down outstanding debts.
Install Home Alarm Systems
Insurance companies want you to protect your home in multiple ways. Installing fire, carbon monoxide, and security alarm systems are good investments for the safety of your home and family. They can also save you money by demonstrating you’ve taken steps to protect your home. Bigger discounts may be available for advanced alarm systems (those that automatically communicate to alert first responders).
Homeowners Insurance for Disasters
Where you live can also affect your insurance policy premiums. If you’re in a part of the country that’s frequently hit with weather disasters, this will increase your insurance costs. However, if you can demonstrate to your insurance company your steps to prepare and safeguard your home against disaster, this can reduce premiums. Ways to prepare your home include special roofing to withstand weather events, and trimming trees to reduce the risk of damage from broken branches.
When backed with expert advice, you can find many ways to save money on your homeowners insurance. As you look to invest in a policy, consult with an experienced agent who can help you determine the best options for you and your family’s financial needs.