Over two-thirds of American homes are underinsured, but many homeowners still think the best way to save on home insurance is to reduce coverage. In reality, there are plenty of ways to cut costs without sacrificing much-needed coverage. For instance, raising your deductible $500 can reduce your home insurance premium by up to 25%!
Keep your coverage level high and your rates low with these five money-saving tips.
1. Shop Around for a Better Rate
Searching for a more affordable policy is the easiest and most effective way to save money on home insurance. Home insurance rates can vary widely by company, and savvy consumers know that comparing quotes is the easiest way to find the best deals. Compare rates often, as significant discounts and savings may have become available since your last policy review.
2. Raise Your Deductible – Save up to 25%
If you’re willing to raise your deductible, you could save a small fortune on home insurance. According to the Insurance Information Institute (III), raising your deductible from $500 to $1,000 can reduce your home insurance premium as much as 25%. You’ll pay a bit more if you file a claim, but keeping more money in your bank account could be well worth it.
3. Multi-line Policy Discounts – Save up to 15%
If you own a home, you probably own a vehicle too. And consumers who bundle their auto and home insurance policies with a single insurer are often rewarded with discounts. In fact, purchasing your auto and home insurance from the same insurance carrier could save you up to 15% on both premiums. What a deal!
4. Home Security and Safety Devices – Save up to 20%
If you’ve recently added a new security device to your home, you may be in line for savings. Insurance companies highly value the protection afforded by additional home safety features, and offer discounts to homeowners who safeguard their homes. Some insurers offer up to 20% in discounts to homeowners who install the following features:
• Home security systems (especially those that contact outside monitoring agencies)
• Smoke alarms
• Deadbolt/window locks
• Emergency sprinkler systems
5. Home Improvement Discounts
A new home's electrical, heating, and plumbing systems—and overall structure for that matter—are likely to be in better condition than those of an older home. Accordingly, new homes generally cost less to insure.