12 Tips to Lower Your Home Insurance Premiums in 2022

Homeowners insurance is important to protect your home and belongings in the event of an unfortunate mishap. However, home insurance premiums are subject to various factors that may cause them to increase or decrease. Here are 12 useful tips to help you lower your home insurance premiums this year.

  1. Raise Your Deductible

    A high deductible means lower home insurance premiums and vice versa. However, in exchange for lower premiums, your insurance company will require you to pay your deductible before it meets its share. Therefore, a high deductible plan is ideal if you have the financial ability to pay for a larger loss by yourself within a relatively short period.

  2. Conduct Regular Home Improvements

    Certain home upgrades can help protect your home against some of the perils listed in your policy, resulting in lower insurance costs. For instance, installing gutters and water barriers can prevent or reduce the severity of weather-related water damage to your property. In case you make any major home improvements, be sure to inform your insurance provider during your coverage reviewal.

  3. Improve Your Credit Score

    Most insurance companies associate a low credit score with high risk, and insurers usually reflect this risk in higher premiums. Therefore, maintaining a good credit score can help you lower your home insurance costs. However, take note that not all insurance providers give home insurance discounts for a good credit score.

  4. Avoid Filing Claims Frequently

    Filing multiple claims within a short period could cause your insurer to cancel your policy or raise your premiums to reflect the risk. For instance, in 2020 alone, frequent wildfire claims caused insurance companies to drop more than 235,200 home insurance policies in California. One way to avoid frequent claims filing is to pay for small losses out of pocket and only seek compensation from your insurer for huge losses.

  5. Only Purchase the Coverage You Need

    Home insurance can only be helpful if you have adequate coverage. While the majority of American households are underinsured, some are overinsured. Therefore, there is a need to maintain an inventory. A detailed home inventory will help you keep track of all the items in your household, allowing you to purchase the right amount of coverage. Moreover, it would come in handy when filing a home insurance claim.

  6. Review Your Coverage Annually

    Major changes on your property can significantly impact your insurance costs. For instance, if you install an electric fence around your home or sell your expensive jewelry, your home insurance rates are likely to reduce due to the lowered risk. However, for this to come into effect, you need to review your coverage and inform the insurer of the changes that have happened over the past year.

  7. Bundle Your Policies

    Bundled insurance plans usually offer discounts ranging anywhere from 5% – 25% depending on the provider. You can take advantage of these plans to cut your home insurance costs, even if it’s just for the short term. Bundled insurance plans are also easier to manage due to reduced paperwork, lesser phone calls, and fewer bills.

  8. Install Security Features in Your Home

    The cost of home insurance generally depends on the risk associated with the policy. For example, installing security features such as motion detectors, burglar alarms, steel shutters, and security cameras in your home would help deter burglars and vandals, reducing your chances of filing a claim. In turn, this would lead to lower premiums and give you peace of mind.

  9. Install Automated Home Devices

    Smart home technology helps monitor and control various home attributes such as appliances, lighting, and climate. It may also include access control, alarm systems, and other home security systems. For instance, an automated leak detector can help prevent water or flood damage by alerting you to rectify the issue before it escalates. If you have already invested in smart home technology, look for an insurance provider that offers smart home discounts.

  10. Change Providers

    Different insurance providers have different costs for home insurance. Keeping this in mind, it is possible to find an insurance carrier that charges lower premiums for the same amount of coverage. Therefore, shop around and compare quotes from different providers to lower your home insurance costs.

  11. Ask for Discounts

    Besides bundling and home improvement, you can also get home insurance discounts by:

    • Sticking to your provider for a long time to earn a loyalty discount.
    • Going claim-free for a specified number of years
    • Living in a secure neighborhood such as a gated community
    • Staying at home for long hours as it’s the norm for most retired people
    • Being married or widowed
    • Moving into a new home
    • Residing in a community where there is a Homeowners’ Association (HOA)
    • Paying premiums in a lump sum

    Take note that while some insurance companies offer some of these discounts, they are usually not automatic, meaning you may have to ask for them first. Also, before the insurance company offers the discounts, they will first conduct home inspections, ascertain the changes, and determine a suitable discount.

  12. Relocate to a Safer Zone

    Some locations, such as California, are prone to natural disasters. Insurers generally classify these areas as high-risk areas and reflect this risk in home insurance premiums. Therefore, you can lower your home insurance premiums simply by relocating to a safer zone. Additionally, if your house has a bad CLUE report, moving to another home, preferably one that has never been occupied before, will enable you to start on a clean report that will not affect your premiums.

Get Home Insurance Coverage That Is Right for You

Whether you want to buy a new homeowners insurance policy or review the old one, the reputable agents at CF&P Insurance Brokers are always ready to help you. Contact us today, and we will help you find the right policy for your unique needs and budget.

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