Ten Tips to Save on Homeowners Insurance

It's important to check your home insurance policy annually – not only to make sure your current coverage is adequate, but to make sure you are protecting the improvements you've made to the property. During the process, you may become aware of ways you could be saving money on your insurance. Here are a few ideas:

1. Get multiple quotes. Comparison shopping makes it easier for you to get the best possible rates on homeowners insurance. As well as price, take into account the coverage comparison. Prices for the same coverage can vary greatly from one insurance company to another.
2. Ask about discounts. Factors like how close you live to a fire station or the type of material used to build your home may make you eligible for lower rates.
3. Raise your deductible. Your deductible – the amount you pay before your insurance company will cover a loss – will probably be $250 or $500. Your premium will be lower if you have a higher deductible, because you're paying more before the insurer has to pay any claims. Increasing your deductible could save you up to 25% on the cost of your homeowners insurance policy.
4. Consider your home's structure. Is it new or old? Is it constructed of brick or wood? Is it located in an area at a high risk for hurricanes, floods, or wildfires? Knowing the answers to these questions will help you get appropriate coverage and could even lower your premium.
5. Consider your home's safety features. Does it have a security system and/or smoke detectors? Do you keep a fire extinguisher in your kitchen? Certain safety features may also make you eligible for discounts on your homeowners insurance.
6. Make your home more disaster-ready. You may be able to save on your premiums by adding storm shutters, reinforcing your roof, or taking other steps to make your home more resistant to windstorms and other natural disasters. Consider updating your heating, plumbing, and electrical systems to reduce the risk of fire and water damage.
7. Insure the home, not the land. It's the home and its contents that are important and need to be protected from fire, theft, etc. When determining how much homeowners insurance you need, don't think about the market value of your house – think about how much it would cost to rebuild your house and replace its contents.
8. Bundle multiple policies with one insurer. If you insure your home and automobile with the same company, you may receive a discount.
9. Review your credit report. Payment history and credit history can be an important factor for homeowners insurance companies – so maintaining a good credit history and paying your bills on time could mean lower rates. Learn more about keeping your credit safe with Identity Theft Protection.
10. Pay premiums in one lump sum. Save service charges by paying your insurance premium all at once rather than in monthly or quarterly payments.

Need more information? Read our frequently asked questions.
Learn about the types of homeowners insurance coverage available.