How to save money on homeowners insurance
Are you paying too much to cover your home?
Monthly insurance premiums are part of the cost of owning a home. You want to make sure you have enough coverage to rebuild your home and protect your personal property. You also want to make sure you are protected from significant weather events, as well as other risks and hazards.
At the same time, you don't want more coverage than you need. Regardless of the amount of coverage you choose, you want to pay the best price for it. Take a look at these tips for saving on your home insurance costs.
Shop current homeowners insurance rates
The cost of your homeowners insurance can rise because of things like increased risks from the weather and rising costs for building materials and labor. Your costs can also rise because insurance companies raise their rates over time. If it's been a while since you priced homeowners insurance policies, we can help you check current rates through our Freedom+ home insurance participant, Matic.
Consider bundling your insurance policies
Many companies sell home, automobile, life, and other types of insurance. These companies frequently offer you discounts when you buy more than one type of insurance from them. This is called “bundling.” If you are buying different insurance from different companies, consolidating your policies with one company might save you money.
Install a security system
Installing a security system can help lower your insurance premiums and give you peace of mind, too. We can help you install a security system and save money on additional equipment with our Freedom+ home security participant ADT.
Make home repairs and upgrades
The condition and features of your home can affect how much you pay. For example, having an old roof, old plumbing, or an old electrical system can increase your costs, because these things can cause more problems and lead to more insurance claims. Making repairs or upgrades to features like these might lower your premiums.
Removing liability hazards like a backyard trampoline or cutting down an old tree whose big branches are hanging over your house might save you money, too. If you've done any of these things and haven't told your insurance company, call them and ask if they can lower your costs.
Decide what coverage you need
One cost to check is how much you are paying to cover your personal property, such as furniture, clothes, electronics, and other possessions. Look at the value of this property and the cost of replacing it. It could be that you have more coverage than you need.
Also, look at the amount of liability insurance you have, which helps protect you when a person is accidentally injured in your home or on your property. Having a higher limit typically costs more money. Decide if you are comfortable paying less for a lower liability limit.
Finally, look at the coverage on your home itself. Insurance professionals often recommend that you have enough coverage to rebuild your current home or purchase an equivalent, new home at today's prices. Home prices and construction expenses tend to rise over time. When you are checking to see if you have too much coverage on your home, also check if you have enough.
Think about raising your deductible
Homeowners insurance policies with low deductibles usually cost more than policies with high deductibles. For example, a policy with a $500 deductible is usually more expensive than one with a $2,000 deductible. If you have a low deductible and are comfortable with paying higher out-of-pocket costs when you file a claim, increasing your deductible might save you money.
Check your credit score
Insurance companies often look at your credit score when they price your policy. Homeowners with higher credit scores can get better rates than homeowners with lower credit scores. If your credit score has improved since you purchased your current policy, you may be able to save money by contacting your current insurance provider or switching to a new one.
Freedom Mortgage is not a financial advisor. The ideas outlined above are for informational purposes only, are not intended as investment or financial advice, and should not be construed as such. Consult a financial advisor before making important personal financial decisions and consult a tax advisor for information regarding the deductibility of interest and charges.
Last reviewed and updated August 2023 by Freedom Mortgage.