Everything you need to know about insurance basics, like coverage types, limits, cost and more.
How to Reduce Your Homeowners Insurance Premium
You’re all about saving money and cutting costs — and why not? It’s a great way to keep your financial dreams on track. One area where you might be able to trim a little of your expenses is your homeowners insurance. From bundling your insurance to knowing what discounts you qualify for, let’s look at some of your options for reducing your home insurance premium.
Simple Ways to Lower Your Home Insurance Rates
Paying less for your homeowners insurance is easier than you think. Here are a few simple ways you can start saving today:
Schedule a Personal Insurance Review
Is your homeowners insurance customized to fit your needs and lifestyle? Life keeps moving forward and often that brings changes. It’s a great idea to have an insurance re-check once a year to make sure you have adequate coverage. Connect with your agent to set up a Personal Insurance Review to make sure your insurance needs are up-to-date.
Raise Your Deductible
Your deductible is the amount you’ll pay your insurance company before they’ll step in and help cover a claim. Typically, if you have a lower deductible, your insurance premium will be higher. Vice versa — the higher your deductible is, the lower your premium will be. If you currently have a low deductible, consider raising it in order to lower your homeowners premium. This way, you’re only out the extra expense if you have a claim.
Adjust Your Coverage Limits
By reducing the amount of your coverage limits, your premium may shift to a lower rate. There are many levers you can pull that will impact your bottom line. By carefully working with your American Family Insurance agent, you’ll be more able to leverage all available discounts and savings opportunities.
Another simple way to save on your home insurance is by bundling your home and auto policies. In fact, you could save up to 23% when you bundle your auto and home insurance with American Family.*
Whether your home is a house, condo, apartment or manufactured home, you can enjoy the convenience of insurance packages and take advantage of bundled insurance discounts. American Family agents know our products inside and out and can help you identify what’s best for your situation. Learn more about the benefits of bundling your insurance.
Make Your Home More Disaster Resistant
Another great way to save money on homeowners insurance is to reinforce your home and make it more weather resistant. If you live in an area prone to hurricanes or hail, replacing your roof with high wind and impact-resistant roof shingles along with related materials can help you qualify for a premium reduction. Retrofitting your home to make it more earthquake resistant and updating your utilities can help you save.
Adding hurricane-rated garage doors and windows are other key ways that upgrading can reduce your premium. Home insurance saving tips like these are great because they help you to get a return on your investment in the form of added savings. And you may also find utility bills are lower when you put into practice some of these ideas — further helping you to save with your upgrades.
Maintain Strong Credit
A good credit rating is among one of the more important ways to save on homeowners insurance. Because your credit rating is used to factor the cost of your premium, great credit will help you get the best possible base rate. By improving your credit score while you’re saving for a home, you’ll find that when the time comes to purchase homeowners insurance, you may qualify for a better rate.
And maintaining a good credit rating is equally important. As your policy comes up for its annual renewal, your insurance company may check your credit rating and adjust your premium according to your latest score. If you’re wondering how to save on house insurance, boost your credit rating — even if you already own a home!
Lower Your Home Insurance With Discounts
One of the simplest ways to save on your home insurance is through home insurance discounts. And the savings can be significant. By bundling your home insurance with an American Family auto policy, you stand to save on your homeowners policy. To ensure you’re getting all the discounts you’re eligible for, check in with your American Family agent. In the meantime, here are a number of discounts you could earn:
Home Purchase Discount
That dream of owning a home pays off in more ways than one — and it can actually earn you a discount. If you’ve purchased your home within the last few years, you may qualify for savings.
Age of Home Discount
How new is your home? Depending on its age, you might qualify for a discount. Check with your agent to see if your home earns you some credit.
If you’ve been a loyal American Family customer for a while, you can earn a reduced home insurance premium — it’s our way of thanking you for being part of our family!
When loyalty goes beyond one generation, you can earn bigger savings. If your parents are American Family customers, you could qualify for the generational discount.
Renovated Home Discount
Make some renovations to the electrical and plumbing in an older home, and you could reap the rewards in more ways than one. Lower premiums are a great way to see unexpected payouts.
Not only are homes outfitted with the latest gadgets pretty cool, they can offer your home added protection that will earn you a smart home discount. Look into security systems, water detection and energy efficiency devices to see if technology pays off with your insurance.
Adding security to your home gives you protection that pays off. Check with your agent to see if you qualify for discounts on alarm systems and smart security like the industry-leading home security system, ADT.
Do you have an accident-free history? Not making insurance claims can help you save on your home insurance.
Going paperless not only saves a tree, but it can save you some money too. Check to see if your insurance offers discounts for enrolling in online billing and e-delivery of policy documents. Find out more about American Family’s Go Paperless discount.
Sign Up for Auto Pay
Many insurance companies encourage their customers to sign up for Auto Pay by offering a discount. Does your homeowners insurance offer this discount?
Pay in Full
If you can afford a lump-sum payment once a year, you may be rewarded with a discount!
No two homes are the same and no two homeowners are exactly alike. Each situation deserves the careful review of an expert American Family Insurance agent, who can determine what discounts will help you reduce your insurance premium. Get in touch with your agent today to get started on your savings.
*Customers who bundle auto and home insurance policies may save up to 23% on both policies together (as of October 2021). Discounts may vary by state, property, policy form and company underwriting the auto and/or home policy. Discounts may not apply to all coverages on an auto or property policy.
This article is for informational purposes only and includes information widely available through different sources.