Your homeowner’s insurance is there to help you in case anything goes wrong in your home. That being said, 5.3% of homeowners filed an insurance claim last year. Insurance claims can raise your rates, unfortunately.
And while there are countless ways to raise your insurance premiums, most people have no clue how they can lower their homeowner’s insurance rates.
There are some things you can do to bring your rates back down, though.
Raise your deductible
Your deductible is the amount of money you will have to pay towards a loss before your insurance company will start to pay for the claim according to the terms on your policy. If you can afford to, you should raise your deductible. You can save as much as 25% on your premiums because the higher your deductible, the more money you can save.
Bundle your home and auto insurance
You can’t go without home insurance, and you can’t go without car insurance. The good news is that you can get those insurance policies from the same company and save some money. If you bundle your homeowner’s policy with your auto and liability coverage, it will take 5% to 15% off of your premium.
When your insurance policy is up for renewal, consider bundling the policies within a single company that offers better combined rates.
Improve your home security
If someone breaks into your home, you’ll often have to file an insurance claim, and your rates are likely to go up. However, if you can install a burglar alarm or a more sophisticated home security system that contacts the police, your insurance policy should go down. You can get a discount of 2% to 6% with a functioning residential security system installed on the premises.
Get a generator
Finally, you can get a generator for your home to help bring down your insurance rates. A working generator help ensures that your home’s systems and appliances that rely on electricity to function will continue to operate during a power outage. This means your home won’t flood because your sump pump isn’t running, your refrigerator will still work, etc. Depending on your insurance company, you can get a discount of 4% to 10% on your policy.
If you want to lower your homeowner’s insurance, try some of these simple tricks. You can also call your insurance company and see if they are offering any discounts or if there’s anything else you can do to bring your rates down. Many homeowner’s insurance companies offer discounts for veterans and other special groups, but you won’t know for sure unless you take the time to find out.
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I’ve had mine with Erie Co for more than 20 years. High deductibles, house and car. Although I shop it from time to time, I can’t find any other company that will beat it…most not even close. I also like I can pay the car insurance a year at a time.
We also carry a 3 million umbrella liability that covers house/car that runs under $300/yr. With law schools cranking out lots of grads, you need it if you have much in the way of assets.
If you’re not convinced the kids need a dog, don’t get one. Chat with your insurance company about the increased cost if you have a dog, particularly if you’re fond of the working breeds like dobermans, German shepherds, Rottweilers, ovcharkas. It’s an eye opener. If you want to keep your insurance on your rental properties low, NEVER, NEVER allow tenants to own dogs, and your lease should be adamant that no dogs whether those belonging to tenants, guests, visitors are allowed to set paw on property. You see, if the dogs are not strictly forbidden, and an allowed dog bites a person, no one goes after the tenant. They sue the LANDLORD. You can lose everything. Also by banning dogs you don’t have problems with dog waste, barking, damage to the building, neighbor complaints and bare spots on the lawn from dog urine or animals tied on a chain. You help stop the cycle of pets being abandoned when the tenant moves on to a property where dogs are not allowed and Fido ends up at the shelter or dumped on a country road. This is coming from a dog lover, dog owner.
Great tip, Karen. I never heard of an ovcharka; I had to look that breed up!
Id lease to a dog owner before someone with children. I know you legally cant do that but children are MUCH more destructive. Especially when the parents arent around to watch them. You cant crate a child. How about the horror stories where a teen brings a friend home and they have alcohol and a party.? Im surprised more insurance companies dont ask about children along with dogs. Why not insist in the lease they have renters insurance ? Ive had barking dogs in the neighborhood and they have been handled. How do you stop screaming children and babies crying? Or mischievous children bothering the neighbors? Both are a huge liability.
We got a metal roof that lowered our yearly premium by almost $100. I also lowered our yearly rate by discussing the details of our home with the insurance company (USAA) and reminding them that we don’t want our 100+ yr. old home covered for rebuild costs of an exact replica, as that would entail custom moldings, plaster walls, etc. Specifying rebuild with drywall, stock moldings, etc. saved us another $400+ this year (and now I know to call them yearly to discuss these things! ;o)