Everything you need to know about insurance basics, like coverage types, limits, cost and more.
How to Lower Your Home Insurance Premiums
Homeowners insurance is designed to give you peace of mind that one of your largest assets is protected from the unexpected. But that sense of security comes with a price — your premium. And, like most things you purchase, it’s important to look around for the best deal, keeping in mind not only price, but quality as well.
Let’s take a look at how you can reassess your homeowners policy to find ways to save on your premium without losing coverage.
9 Tips to Save on Homeowners Insurance
Keep these tips in mind when you're looking for ways to reduce your home insurance premium.
Have you been with your home insurance provider for many years? Now might be a good time to start looking at what else is out there. Shopping around for a different insurance provider gives you the opportunity to compare prices from multiple companies, as well as reassess your coverage needs to see if you have any gaps and ensure that you’re not paying for coverage you don’t need.
Remember, your home insurance is there to protect you from the unexpected, and having coverage amounts that match your home’s needs is more important than sacrificing coverage for a reduction in your premium. So when quoting with different companies, you’ll want to have your current homeowners policy on hand or send an email to the agent reviewing your policy. This allows you to evaluate your existing coverage and adequately compare your current price to quoted prices with coverage levels top of mind.
Bundle your home and auto insurance
Do you get your homeowners and auto insurance from different providers? You might want to consider joining the 57% of American Family Insurance customers who save time and money by bundling their home and auto insurance. Bundling insurance means buying multiple types of insurance, like your home and auto, from one insurance provider. Not only can you enjoy the convenience of all your policies being under the same roof, but you can earn a multi-product discount. In fact, with American Family, our customers on average save up to 42% on their auto coverage and 27% on their homeowners coverage. Here’s a closer look at the benefits of bundling your auto and home insurance.
Increase your deductible
Another way to lower your home insurance premium is to raise your deductible. Your deductible is the amount you’ll pay your insurance company before they’ll step into help cover a claim. Typically, the rule of thumb is the lower your deductible, the higher your premium, and the higher your deductible, the lower your premium will be. If you have a low deductible, consider increasing it so you’re paying less for your premium and only paying more if you have to file a claim.
Check your eligibility for homeowners insurance discounts
Discounts are another great way to reduce the cost of your homeowners insurance — and most of them require little to no work to qualify. From going paperless to adding smart technology to your home, there’s a variety of homeowners insurance discounts you might be eligible for. Our advice? Give a call to your American Family Insurance agent to see which home insurance discounts you might qualify for.
Improve your home security
Being proactive about protecting your home can earn you savings on your premium — not to mention provide you peace of mind. Many insurance companies encourage their customers to install a security and/or alarm system because it can help prevent potential claims, including theft, vandalism, fire and smoke. Whether it’s set of smart home devices, like the full ADT smart home security system, or something as simple as battery operated smoke detectors, you can earn a discount on your home insurance for making savvy choices about your home’s safety.
Make updates on your home
Have you replaced the plumbing in your home in the last fifteen years? How about any electrical or heating systems? Many insurance companies, including American Family, offer a renovated home discount for updates like these. Updating and maintaining important features of your home not only help prevent expensive damage from occurring, but ultimately can help you avoid filing an insurance claim. And many insurance companies want to reward customers for making responsible choices. If you’ve made some updates like these within the past fifteen years, give a call to your insurance agent to see if you qualify for a discount.
Work on your credit score
Did you know that your credit score affects your home insurance premium? Your insurance company will use information in your credit report that helps them calculate your credit-based insurance score. Your credit-based insurance score is a three-digit number calculated from information in your credit report. Its purpose is to provide an assessment of your insurance risk as a particular point in time. Essentially it’s used to forecast your future performance as a customer and how likely you are to file a claim.
So, naturally, the better your credit score, the better your credit-based insurance score will be — which also means the more favorable your homeowners insurance premium will likely be.
Reassess your home inventory
Part of your homeowners insurance includes coverage for your personal property, and one way to make sure you have proper coverage limits is by creating a home inventory. A home inventory is a list of all the items, especially valuables, in and around your home. It’s a great way to help determine the right amount of coverage for all the things that matter most to you.
Having an up-to-date inventory helps you assess what items may or may not need to be itemized, such as itemizing valuable jewelry, and what items may need replacement cost coverage versus actual cash value coverage. Reassessing your home inventory also gives you the opportunity to check out your coverage limits, where you just might realize that you don’t need as high of limits as you originally selected. Evaluating your personal property with a home inventory list is an easy way to discover ways to save on your premium.
Talk to an insurance agent about saving on homeowners insurance
Your best bet to find savings on your homeowners insurance is contacting your American Family Insurance agent. They’ll help you find out all the homeowners discounts you qualify for and what coverages you need or don’t need — all while keeping your bottom line top of mind.
This article is for informational purposes only and includes information widely available through different sources.