10 Easy Ways to Lower Your Homeowners Insurance Costs

how to lower your homeowners insurance costs

Depending on the insurance company you buy your policy from, the cost of your homeowners’ insurance might vary by hundreds of dollars. However, your home insurance policy need not always be expensive. There are some easy ways using which you can save on your home insurance premium. When purchasing homeowners’ insurance, keep the tips provided in this article in mind to save on your home insurance costs.

    1. Don’t mix the price you paid for your home with the rebuilding cost– The land beneath your house is safe from theft, windstorms, fire, and other risks covered by your home insurance. As a result, don’t consider its value when determining how much homeowners insurance to purchase.
    2. It is beneficial to buy your house and car insurance plans from the same firm– If you buy two or more policies from the same company that sells homeowners, vehicles, and liability insurance, you can save 5 to 15% on your premium. However, make sure that the overall price is less than purchasing the various levels of coverage from different companies.
    3. Make your house safer and more disaster-proof– Adding storm shutters, bracing your roof, or using stronger roofing materials could help you save money on your insurance costs. Older houses can be retrofitted to make them more earthquake resistant.
    4. Don’t buy the cheapest home insurance policy you find– The value of your home is not determined by its construction costs but rather by how much it will sell for when you decide to sell it. The cost of rebuilding a house does not affect the price that someone will pay for it.
    5. Do not underestimate the value of your house– When determining how much insurance to buy for your house, don’t forget about its equity. You can increase the cost of homeowners’ insurance by as much as 25% if you have a lot of equity in your home. If you plan on selling or refinancing, make sure you include this factor.
    6. Don’t ask your insurance agent to guess the value of your house– When you are trying to decide how much homeowners’ insurance to buy, don’t rely on the advice of your insurance agent. If you want an accurate answer, hire a professional appraiser to determine the value of your home.                                                Some Common Home Buying Myths You Should Be Aware of 
    7. Don’t make a decision about home insurance based on emotion– When purchasing insurance for your house, you must consider all factors when making a decision. Do not be swayed by a catchy advertisement or offers that are too good to be true. Also, despite staying with a particular insurance provider for a long time being beneficial, you need to analyze your policy periodically to understand if your current insurance provider is fulfilling all your requirements within your budget or whether you need to switch. You need to logically make decisions regarding your insurance based on your requirements, budget, preferences, and benefits given by your provider. Emotions can cloud our judgment and cause us to make poor choices in life.
    8. Don’t forget about your plans for the house– Many people think that they can get away with not purchasing homeowners’ insurance because their home will be worth more in the future, but this is a mistake. If you don’t purchase coverage now, you won’t have enough money to pay for it later if anything ever happens to your property.
    9. Continue to use the same insurance company– If you’ve had your insurance with the same company for several years, you might be eligible for a special discount. Some insurers offer a 5% discount if you stay with them for three to five years, and a 10% discount if you stay with them for six years or more.
    10. If you’re on a government plan, search for a private insurance– If you live in a high-risk area, probably one that is quite vulnerable to storms, fires, or crime, and have been purchasing homeowners insurance through a government plan, consider consulting an insurance agent that might be interested in your business.

More: Are My Homeowners Premiums Tax Deductible in 2022?

Want to purchase a home insurance policy or want to update your current one? Contact our team at Gee Schussler Insurance today to get your personalized home insurance coverage at affordable prices.


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