After recently buying a new home, I was surprised by the difference between multiple homeowners insurance quotes. I like to dig into the details so I jumped on the phone with each of the companies and found several differences in what the policy was actually covering. This got me thinking that it is too easy to overpay for home insurance. Below are 5 ways to lower your home insurance rates.
- “All in one” – As many of you know, if you consolidate your home insurance with your other forms of insurance at one company, they will likely offer you discounts of 10-15%. However, this should not be the only reason to switch and I actually found a less expensive policy for a steeper discount somewhere else.
- Deductible – Many home insurance companies quote a standard deductible for every home. However, if you have a newer home with a low risk of a claim, it may be worth increasing your deductible to lower your premium.
- Lower Coverage – You have to be careful with this one so be sure to work with a qualified agent. In some cases, you may be paying for coverage you don’t need, such as personal items, detached property, etc.
- Improve your house – You can often lower your premium by having safety measures in place, such as a home security system, storm-resistant shutters, stronger roofing material, and fire prevention system. Before doing any repairs check with your insurance company that they will lower your premium to an amount that justifies any improvement expenses.
- Maintain a good credit rating – Yes, they will check your credit history and it can impact your premium.
Disclaimer: Alex Voorhees and Reston Wealth Management do not provide legal, accounting, insurance or tax advice. This information is not intended to be a substitute for specific individualized legal or insurance advice. We suggest that you discuss your specific situation with a qualified insurance agent. The opinions voiced in this article are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which strategies may be appropriate for you, consult your financial advisor and other appropriate professionals, such as a homeowners insurance agent.