13 Ways to Lower Your Homeowners Insurance Bill

You paid a lot of money for your home, it makes sense you want to protect it. However, have you looked at your homeowner’s insurance bill lately?

If not, you might be paying even more than you have to. Now’s a good time to really dive into the policy and see if there are ways you can cut costs down. After all, what’s better than saving money?

According to insurance experts, there are some things you can do to reduce your bill.

Bundle Your Insurance

You should always bundle your insurance. That is, use the same insurer for your different policies. Agencies reward their clients for doing this by offering what’s called a multi-line discount.

Definitely do your research and make sure that the combined cost of the policies is cheaper than buying them separately. In some instances, you might save more with different companies.

Do Away With Unnecessary Coverage

Have you ever looked closely at your bill? Like really closely? If so, you’ll see a list of itemized coverages. Chances are you don’t need every single one of them, so you could potentially reduce the cost by trimming the fat.

Before you remove any of the itemized lines, though, ask your insurance company if it’s something you need and ask them to explain exactly why you need it, so you can make an informed decision.

Remove Land Coverage

Some homeowner policies include coverage for your land value, which is often unnecessary. Most, if not all of the time, the coverage you need is simply for your home and its contents.

Speak with your insurance agent and see if it’s possible—and a good idea—to have land removed from the policy.

Remove Old Structures

Do you have a barn or a shed on your property that’s in bad shape? You’re more than likely paying coverage for that, as well. You have two options, here.

You can fix up the structures and make them worth insuring, or you can tear them down and remove the coverage.

Remain Loyal

It can be tempting to switch insurance companies every few years in search of a better deal, but sometimes the real deal means staying with your existing one.

If you’ve been with the same agency for years, they might tack on a loyalty discount, which could bring your monthly premium down.

Add a Home Security System

One of the things insurance companies look at when estimating risk factors is the home’s security. Even if you’re in a rural area with no neighbors nearby, it can benefit you to have some sort of security system installed.

Additionally, you’ll want other types of security measures such as hard-wired smoke detectors to help warn of a fire and deadbolts. Your insurance agent should be able to give you a list of things that will help decrease your premium.

Mitigate Risks of Accidents

If you have a pool or a trampoline at your home, your insurance agency will likely view these as additional risk factors, which can result in higher monthly payments.

Make sure, first, that any injuries caused by a trampoline would be covered, and second, that if you have a pool, you have additional safety measures installed. A pool cover, for one, to prevent drownings, and a gate around that sets off an alarm if it’s breached.

Remove Excess Brush and Trees From Property

This might seem, in a word, excessive, but it’s particularly helpful to do so if you live in an area where wildfires are common. It would make your house less of a risk, in some senses—at least from an insurance perspective.

You can call in the experts to do this for you and then notify your insurance company of the changes.

Boost Your Credit Score

Believe it or not, many insurance agencies will increase your premium if you have a less-than-stellar credit score. And they check it periodically. If your score drops, you can expect your monthly payment to increase.

The best way to avoid these increases or to decrease your premium is to boost your credit score.

Consider Claims Carefully

Obviously, having insurance means you’ll want to use it if something happens around your home. However, if you file too many claims, you may be viewed as a higher risk and—you guessed it—be charged more.

Instead of rushing to file a claim at the first sign of something wrong, consider whether you can fix it and pay out-of-pocket. It could actually save you money in the long term.

Pay Your Premium in Full

If you can afford to do so, it can save you money by paying for the premium in full. Policies are issued on either a six- or twelve-month basis, and it’s not uncommon for agencies to charge a fee to split it into payments.

If your insurer doesn’t do this, then you’re okay. But if you notice a charge for the payment plan, it could benefit you to pay upfront.

Lower Your Coverage

I’m not saying get rid of coverage you need. But oftentimes, our policies are so riddled with additional coverages that we don’t need and we’re not even aware of it.

Make sure the items on your policies are still relevant and worth the amount listed. Valuables tend to lose value over the years, and you can adjust your policy accordingly.

Opt For a Higher Deductible

This one isn’t necessarily a discount, but it is worth mentioning. If you’re looking for a lower monthly bill, you might opt for a higher deductible.

Just be aware that this means you’ll have to pay more out of pocket if you ever file a claim, increasing your financial risk.