Many homeowners feel they are paying too much for their home insurance, but they’re not sure what they should do to decrease the cost of their premiums. Below are six steps homeowners can take to lower the cost of home insurance coverage without compromising the protection of their property and personal belongings.

  • Umbrella policies Many insurance companies offer discounts for bundled or “umbrella” policies that package two or more policies, including auto, boat, and home insurance, into one single insurance policy. You may save as much as five to 15% when you purchase and bundle two or more coverage plans.
  • Raise your deductible Your deductible determines the amount of your home insurance premium payments; the higher the deductible, the lower your premiums. Consider increasing the amount of your deductible only if you can afford to do so or managed to set aside an emergency fund.
  • Safeguard your home The cost of your insurance may decrease if you take measures to protect your home by installing carbon monoxide detectors, smoke detectors, and/or a home alarm system. Installing storm shutters and windows and reinforcing your roof may also help reduce the cost of the monthly premium you pay. Consult your agent for guidance as to what you can do to safeguard your home and lower the cost of your home insurance.
  • Remove unnecessary riders Double check your policy to be sure it doesn’t include unnecessary riders that address perils you will never encounter. If you live in the middle of New Mexico, you probably don’t need a hurricane rider.
  • Discounts for loyal customers Some insurance companies offer five to 10% discounts for policyholders who have been with the company for a certain number of years. Be sure to ask about such discounts if you’ve been with a company for three years or more.
  • Review automatic inflation adjustment Your insurance company will automatically increase your dwelling coverage each year to account for inflation and the rising costs of rebuilding a home. However, if your dwelling coverage seems high, ask your agent to run a new replacement cost estimate. It may be that the automatic inflation adjustment needs to be recalibrated.

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