9 Ways To Save on Homeowners Insurance in 2024

Shop Around

One of the best ways to lower homeowners insurance costs is to do your homework before buying a policy. As you explore homeowners insurance providers, be sure to take these steps:

  • Compare coverage: Don’t just focus on cost when you compare companies. It’s also essential to review the types of coverage, endorsements and coverage limits each company offers.
  • Read reviews: To get firsthand insight into a company’s customer experience from actual policyholders, you should read reviews from sites like Trustpilot, Yelp and Google reviews.
  • Check out third-party ratings: You can use Better Business Bureau (BBB) ratings and J.D. Power scores to assess user experience. Look to AM Best and other credit rating agencies to gauge a company’s financial strength and ability to pay claims.
  • Get quotes: Home insurance rates can vary by hundreds of dollars depending on your coverage needs and which company you choose. We at the Guides Home Team recommend comparing insurance quotes from multiple companies to ensure you get the lowest rates possible.

Bundle Home with Other Types of Insurance

Bundling your home insurance with other types of insurance can lower your overall premiums.

For example, buying your home insurance from the same company that provides your car insurance can net you a discount on both policies. You can save even more when you bundle your homeowners insurance with your life insurance — and even pet insurance. Our research found that you can save between 5% and 25% on your insurance premiums when you bundle policies.

To make the most out of bundling, check the coverage limits and cost of each policy. For instance, when buying a home and auto insurance bundle, estimate how much both policies will cost individually. Then, compare the combined costs to ensure you are getting a good deal.

Look for Additional Discounts

In addition to multi-policy discounts, insurance companies commonly offer many other discounts to help you lower your insurance costs.

Look for the following discounts when shopping for homeowners insurance:

  • Claims-free: You can qualify for a claims-free discount if you have not filed a homeowners insurance claim in the last few years.
  • Security systems: Insurers generally offer you a discount if you have installed fire alarms, burglar alarms or surveillance cameras on your property.
  • Pay-in-full: You can qualify for a discount if you pay for a full year of homeowners insurance rather than paying premiums in installments.
  • Paperless billing: If you sign up for electronic monthly statements, you could earn a paperless discount.
  • Smart home: Having smart locks and leak sensors can score you a discount.
  • Gated community: Your insurance rates could be lower if you live in a gated community.
  • New home: Insurers generally offer this discount if your home was built or totally renovated in the last 10 years.

Increase Your Deductible

Your deductible is the dollar amount you are responsible for paying before your coverage kicks in when you file a claim. By choosing a higher deductible, you can lower your monthly or annual homeowners insurance bill. Just keep in mind that you’ll have to pay more money out-of-pocket in the event of a claim.

But before you increase your home insurance deductible, it’s critical to budget for it. Make sure you have enough money set aside in savings to cover an emergency claim.

Protect Your Home

When you protect your home from fire, theft and natural disasters, you reduce the risk of having to file a claim in the future.

Taking these steps to shield your home from costly claims can also earn you lower home insurance rates. For example, you may be able to save money on premiums and protect your home by using fire-resistant roofing materials or adding storm shutters.

You could also unlock discounts for adding home security features such as deadbolt locks, security or alarm systems, sprinkler systems, smoke detectors and fire alarms. Get quotes on these products and talk to an insurance agent to see how these features could save you money.

Keep Up Your Credit Score

As with credit cards and other financial products, your credit history can affect your home insurance costs. Most insurance companies factor your credit score into your premiums — the higher your credit score, the better rates you may be eligible for.

To improve and maintain a good credit score (670 or higher), focus on making payments on time, keeping your credit use as low as possible and checking your score regularly.

Review Your Policy and Take Inventory Regularly

Your home insurance needs and the value of your belongings can change with time. As such, it’s crucial to review your homeowners insurance policy annually to ensure your amount of coverage and deductibles are still a good fit.

You should also take stock of your possessions and reevaluate any endorsements you’ve added to your policy, such as a floater offering additional protection for a piece of fine jewelry or a computer that you perhaps no longer own. Likewise, you should factor in home renovations and upgrades, as they can change the value of your home and your coverage needs.

It’s a good idea to talk to your home insurance agent about changes to your policy and coverage needs.

Avoid Small Claims

While homeowners insurance is designed to protect you and your home, excessive home insurance claims can lead to increased rates.

Even though a minor instance might be covered, filing a claim might not always be the wisest move for your wallet. Insurers often reward you with discounts for being claims-free for a specific number of years.

When deciding whether or not to file a homeowners insurance claim, weigh the cost of paying out-of-pocket against the impact the claim could have on your home insurance premiums.

Ditch Risky Items You Don’t Use

It may be worth getting rid of the trampoline your kids have outgrown or the swimming pool with little more than leaves floating in it.

Liability insurance is one of the key coverages of your home insurance policy, and it protects you from legal and medical bills if anyone is hurt on your property. Structures that increase the risk of a claim, such as pools, trampolines and playground equipment, can drive up insurance costs.

Contact your insurance company to see if adding protective features such as a fence or removing these structures could lower your rates.

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