One relatively simple way to lower your homeownership costs is to lower your homeowner’s insurance. You may think your insurance rates are set in stone, but there is actually a lot you can do that may end up lowering your costs. First, understand that your insurance rates are based not only on your home’s value, location and general risk level but also on certain facts about you.
For example, insurance providers may raise your homeowner insurance rates if you have bad credit or are known for making claims.
Here are a few actionable steps that may help to lower your home insurance cost:
Compare homeowners insurance rates. This should be your first step, but make sure you don’t ignore customer service reviews. A low premium means nothing if the company you choose won’t cover you adequately.
Look for homeowners insurance discounts. There are many different discounts on home insurance that you may be eligible for. Look for bundling discounts, energy-efficiency incentives and any other discount you may qualify for.
Only file claims when you have to. The more claims you file, the higher your insurance premiums will be. Companies look at your claims history when setting a premium. Therefore, you should avoid filing small claims.
Raise your deductible. Increasing your homeowners insurance deductible is a quick way to lower your premium, especially if you don’t have a habit of filing claims for relatively low-cost repairs.