Creative Ways to Cut the Cost of Homeowners Insurance

Protecting your property is essential, but the cost of insuring it could eat you out of your house and home. With risks increasing and wages holding steady, many homeowners feel the pain as their policy renewals come around.

If your latest premium has left you with sticker shock, it’s time to do something about it. You do not have to take those higher rates sitting down. Here are nine things you can do to get them back under control.

Up your deductible.
Your deductible and premium move in opposite directions, so one of the best ways to reduce the monthly cost is by accepting a higher deductible. You will have to pay more in the unlikely event your property is damaged, but you can use the premium savings to beef up your emergency savings.

Downsize your mortgage.
The cost of mortgage insurance is often included in your premiums, so downsizing your mortgage could have a similar impact on your insurance costs. A lower monthly premium is another reason to make paying off the mortgage one of your main priorities.

Protect your possessions.
Adding a security system to your home is a great way to protect the people you love and the stuff you own. It can also be a great way to lower your monthly homeowner’s insurance premiums. Many companies provide steep discounts for protected homes, so ask your agent about the savings.

Watch your neighborhood.
Joining a neighborhood watch program is a great way to get to know your fellow homeowners, but it can also help you lower your insurance premiums. Some companies provide discounts for neighborhood watch members, so ask your agent before the next meeting.

Consider your pup carefully.
It may not seem fair, but you may be penalized for the kind of dog you bring into your home. Certain breeds, including Staffordshire terriers and Akitas, could cause your homeowner’s insurance premiums to spike. If you already have a four-legged friend you love, you may be OK with paying the extra money, but if you are thinking about getting one of these dogs, you should ask about these breed-specific penalties.

Upgrade your infrastructure.
Hardening your home’s infrastructure to protect against natural disasters can significantly reduce the risk of devastating damage. Ask your insurance agent about discounts for this hardening, especially if you are contemplating a major upgrade or home improvement.

Improve your credit score.
The writers of homeowners insurance policies may consider credit scores when setting premiums. They may also review those scores from time to time. That means beefing up your credit score could lower your monthly premiums.

Bundle your policies.
Insurance companies often provide significant discounts for bundling, so you could save on all the policies you hold. Moving your automobile and homeowners insurance under the same umbrella could result in substantial savings for your house and car.

Shop around every year.
Homeowners insurance is not a set-it-and-forget-it proposition; it is vital to review your coverage occasionally. If prices have risen since you bought your policy, you may need additional coverage to protect you. Shopping around could also save you money since every company uses its own underwriting policies.

Buying homeowners insurance may not be an option, but you don’t have to pay more than necessary. From shopping around regularly to installing a sophisticated home security system, there are things you can do to reduce the high cost of protecting your property and possessions.