Home insurance is one of the ways of safeguarding one of your most valuable assets – a home. However, premiums can prove to be costly in the long run. Here are some tips to help you cut on the costs of your home insurance policy without having to let go of important aspects.

1. Shop Around and Compare Rates

Another tip that can work to the benefit of a homeowner is to compare the rates offered by different insurance companies. Premiums also change from company to company so it will be wise to compare the quotes from at least 3-5 insurance companies. This way, you can easily enter sample rates on comparison websites, but it is important to contact the companies to obtain quotes. This extra step is necessary because the quoted prices on the internet may not be as low as the ones that you are eligible for.  

When evaluating your available choices, it is also important to consider the coverage limits and the deductibles. Ensure that you have policies that afford coverage for dwellings and personal property to replace or rebuild your home. Also verify that policy also covers liability and other risks like flood or earthquake if any is required.

2. Increase Your Deductible 

One of the easiest ways of managing home insurance premiums is by opting to take a higher deductible. For instance, there can be a provision that states that you can save between 15% and $1000 by raising your deductible from $500. But make sure you have sufficient amounts of money in your emergency fund to cater for the higher deductible in case of an accident.

3. Combine Home and Auto Insurance 

Most insurance companies give you a discount when you take home and auto insurance policies from the same insurance company. The savings differ depending on the insurance company, but it ranges between 5-15% of the total premiums you pay. Bundling is only advantageous if the bundled rate is lower than the cost of getting the same amount of coverage from two different companies.  

4. Enhance Home Security 

Incorporation of security features such as dead bolt, alarm system, smoke detectors or fire extinguishers may enable you to get premium reduction. Call the providers to ask about the particular promotions in existence. Implementing these features also improves security and could generate more savings by minimizing risks and/or lowering insurance costs.

5. Organize Group or Professional discounts

There is always an option to get a group insurance discount if ever you are a member of some associations or clubs like AAA or any university alumni or employee group, etc. Some occupations enjoy a special discount when it comes to home insurance and this includes teachers, first responders and other members of certain professions so don’t hesitate to inquire.   

6. Improve Credit Scores

A majority of insurance companies employ CIBIL scores in an effort to determine premium charges. Having a good to excellent credit rating reduces your risk profile in the eyes of the insurer and could translate into savings. Minimize credit card balances, pay all the bills on time and rectify any mistakes on credit reports to improve the credit score.  

7. Review the Policy Annually

It is recommended to review home and auto insurance policies at least once a year before renewal to make sure that you have the best value for the coverage. It is advisable to increase the dwelling coverage and possessions value if you have made tremendous improvements on your house or bought costly materials such as jewelry or art. By making sure you have an accurate insured value it is possible to avoid being underinsured. 

Also, it must check if there are no more eligible policy discounts, or if home and auto insurance can be bundled for a better deal at the moment. Inform any changes in your life like installing a new security system, retirement, or a move. Some changes in the lifestyle make people to qualify for more discounts.

8. Avoid Frequent Claims

It is always wise to ensure one files genuine claims to make a claim for the compensations for the losses that are under the policy but it is realized that frequent and tiny claims may increase the actual premium amount in the long run. Insurance organizations follow the claims frequency and will not hesitate to consider the frequent submitters as high risk even if all the claims were legitimate. For small losses under $500 for instance, it looks at simpler ways of compensating such as direct cash payments so as not to drain policy claim limits.

9. Raise Your Property Deductible

For instance, if you currently have a high property deductible of $2,500, you can increase it further to $5,000. It increases the amount that one has to contribute towards any loss that is covered by the policy, but in turn attracts considerably lower premiums. Decide whether the amount you save should compensate for the additional risk or if you should be able to cover emergencies first.

10. Use Policy Discounts Wisely 

Make sure you use every genuine discount that you are eligible to to help you reduce the home insurance premium. However, do not be too quick to enroll in programs that promise to provide very deep discount but come with very many conditions. For instance, some insurers may provide up to 15% discount once a homeowner installs a formal home security system. However, if they fail to activate that system on a daily basis, the discount is made invalid and rates are increased, the overall saving advantage may be offset. Remember to initially go through all the policies and select the discount programs that you can commit to for the long-term, at least.

Cutting the expenses on home insurance is not the easiest of tasks, yet it will provide substantial savings to your fixed premium costs. Some of the most effective ways of lowering the amount that one pays while still preserving on the coverage include getting quotes, proper bundling of policies, having good credit and increasing home security. It should be reviewed at least once a year and be compared to the current market price every 2-3 years to get the most out of it. If you own a valuable property, you may need to purchase home insurance, but that does not mean you have to spend to much by applying these clever ways.