Ways to Save on your Homeowner Insurance
- Bundle your homeowners insurance with your auto insurance. Most insurance companies discount both the home and car insurance when they are packaged together.
- Buy a newly built home. The new home discount is worth up to 20%. Insurance companies realize that the likelihood of a claim on a new home is less. All major systems are new.
- Install a burglar alarm. Most insurance companies offer a discount when the home is secured with an alarm system. Obviously, the threat of theft or break in is less.
- Maintain current insurance without lapse. If there is a lapse of coverage, many insurance companies will not offer their “preferred” market. You may have to start over and build longevity.
- Maintain good credit. Statistically, insureds with good credit file fewer claims and the insurance companies will discount their policies for being financially responsible.
- Avoid making small and frequent claims. Often, the homeowner insurance premium will be surcharged when a claim is filed. Several small claims may increase the premium more than one large claim.
- Consider raising your deductible. You will receive a discount for taking on the small losses yourself. Reserve the insurance company for the loss that would be financially difficult to handle yourself.
- Take good care of your home. A home that is well maintained is less likely to have claims. For example, if the major systems (roof, plumbing, electrical, furnace) are updated, damage from break down or wear and tear is less likely to occur.
- Avoid owning a vacant home. Most insurance companies do not want to insure a vacant home. These homes are more prone to vandalism, fire or water damage. Because of this, your agent may have to obtain insurance from a specialty market, which is typically at a higher premium.