12 Effective Ways to Lower Your Home Insurance Costs

12 Effective Ways to Lower Your Home Insurance Costs

Becoming a homeowner is one of life’s most rewarding experiences. However, it isn’t one without costs. A good example is Home Insurance costs.

home insurance costsJust like other costs, Home Insurance costs may rise. As a matter of fact, it increased an average of 50% nationally over the past decade. This often happens when your home and property gain in value. As the value increases, so does the repair costs.

In turn, insurance companies must revise the insurance costs in order to stay compliant. Luckily, there are some measures you can take to keep these costs under control. A local property management company here in Tampa, Advantage Realty, suggests following measures.

Be loyal to one insurance companyhome insurance costs

A lot of companies will reward you for your loyalty. Farmers Insurance is a good example. They will reduce your homeowners’ deductible by $50 for every year that you are with them. In addition to this, they won’t increase your premium, thus lowering your home insurance costs.

Consider installing an automatic power generator

Power outages are often common during winter. Without power, your pipes may freeze. Frozen pipes are a problem by themselves because they prevent water flow. Even worse, these can burst, causing another set of problems.

With an automatic power generator, you won’t have to worry about this. Your essential appliances will keep running without interruption. It’s even likely that your insurance providers will discount your premium for doing this.

Consider installing storm doors and shutters

If you live in an area prone to major storms and hurricanes, consider installing storm doors and shutters. While this can easily be a Do-It-Yourself (DIY) project, consider hiring professional help.

Similar to other updates, this can earn you an insurance discount as well. Don’t forget to store the receipts of the project properly as your insurance provider may request for them.

Update your old home

Although old homes are full of character and history, these are the most inefficient structures. Consequently, these attract a higher premium.

If you own one, consider replacing vital systems. Plumbing and electrical are a good example of such. Removing the antiquated pipes or wiring will certainly lower your premium.

Install an alarm system

home insurance costsTake proactive steps and keep your home safe with Safewise. By doing so, you will demonstrate to your insurance providers that you are taking proactive steps to prevent damage or loss to your home. Doing this may potentially earn you a discount on your premiums.

Pay in a lump sum rather than monthly

Paying in lumpsum may reduce your premiums as well. This is because premium payments often include a processing fee.

For example, by paying annually, you could save as much as $50 or more each year. This, however, is dependent on your provider’s processing fees.

Opt for paperless billing

home insurance costsThis is an easy way to get a small discount. Most insurers, like many other companies you make bill payments to, are looking to lower costs of billing by switching to electronic payments.

Avoid making small claims

Avoid making small claims each time that damage occurs. Instead, pay them yourself if you can. This may be beneficial to your premium down the line. Unknown to many homeowners, many insurance companies keep notes on their customer’s claims.

Even changing companies may not help avoid this. The more the claims, the higher your premium will be.

Combine your insurance policies

home insurance costsBundling your insurance policies can result in a considerable discount to your overall home insurance costs. Usually, you can save up to fifteen percent or more.

It’s important to compare quotes from multiple companies as each may have different rates.

Review your policy limits annually

It is understandable that you want major purchases or additions to your home covered. However, it’s not in your best interest to spend money for coverage that you don’t require.

If your valuable artwork is no longer worth the $7,000 that you paid for it, consider reducing or even cancelling your floater and pocket the difference. This is another great way to lower your home insurance costs.

Maintain a good credit score

Insurers are increasingly using credit information to price Home Insurance policies. Needless to say, a bad score will lead to higher premiums and vice versa.

To keep your score in good standing, you need to do several things. Most important ones include keeping your credit balances as low as possible; not obtaining more credit than you need; and above all, paying your bills on time.

Raise your deductible

Lastly, raise your deductible to lower your Home Insurance costs. Basically, a deductible is

the portion of an insurance related bill your insurer will not cover. The higher it is, the lower your premiums will be.

Though your Home Insurance costs may rise, these are the main ways you can keep your premiums low. If you have any

specific questions, kindly seek help from our experienced insurance agent by phone or email.

Toll Free: 888.663.5088
Phone: 813-341-1530, Fax: 813-644-7949

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I would like to thank you for your assistance in placing my home owner’s coverage. I was concerned when I received a notice of non-renewal from Liberty Mutual because they are reducing their overall hurricane coverage in Florida. You and your staff were able to place my coverage at a very competitive price. Thank you for answering all my questions in such a professional matter.
Amy Pikulski