A home is typically the largest purchase someone will make in their lifetime so it makes sense to protect that investment as much as possible. That’s where homeowner’s insurance comes in. You make regular payments and they help out in the event of home damage. 

Not only is homeowner’s insurance a good idea for protection and stability, if you have a mortgage, then it’s a requirement by your lender. While everyone needs homeowner’s insurance, we can agree that those premiums are expensive and will only continue to go up. Fortunately, we’ve put together a list of some of the best ways to save on homeowner’s insurance below!

1. Bundle your insurance policies.

People often have insurance policies with multiple providers. For example, you may have your auto insurance with one company and your homeowner’s insurance with another. Bundling coverage under one insurance provider can result in substantial savings.

The term is “multi-policy discount” and most insurance providers will happily give you one if you bundle policies with them. More policies equals more money for the insurance company so they will reward your loyalty and pass the savings on to you, which often results in drastically reduced premiums. 

2. Get rid of coverage you don’t need.

Most people can benefit from taking a closer look at their homeowner’s insurance policy. Some parts may be required by the lender such as coverage for structural damage and liability coverage in the event of an accident.

Beyond the minimum requirements, there may be additional coverage included that’s simply not necessary. If you have a lender, confirm the minimum requirements, and then you can probably drop the rest. Eliminating coverage that does not fit your needs can result in substantial savings on your premiums. 

3. Increase your deductible.

The deductible is the amount you pay out of pocket for a covered claim. For example, if you have $2000 worth of damage to your home and your deductible is $500, you would pay the first $500 and the insurance company would pay the remaining $1500.

When you increase your deductible, the insurance company will be on the hook for less money in the event of damage, which means you’re less of a risk to them. Less risk equals lower premiums. Increasing your deductible by just a few hundred dollars could result in major savings.

It’s important, however, to make sure that you have an emergency fund or other savings established to make up for the increased out of pocket expenses that a higher deductible would entail if you ever have to make a claim.

4. Improve your credit score.

Unless you live in California, Maryland, or Massachusetts, where insurance companies are prohibited from using FICO scores to calculate premiums, a low credit score could equate to higher premiums for your homeowner's insurance.

Just like how increasing your deductible makes you less of a risk to the insurance company, so does a good credit score. Since you’re less of a risk, your premiums will go down. Monitor your score regularly and improve it as much as possible by paying off or consolidating balances and working with creditors to remove any negative remarks that may be bringing it down. 

Once your score increases, contact your insurer to let them know and see if you qualify for a better premium. A small improvement in your credit score could result in big savings. 

5. Ask about special discounts for home improvements.

Insurance companies love to see a responsible homeowner and when you make updates that decrease the chance of future problems, they'll reward you with a discount. These updates include everything from major renovations to simple security measures.

The biggest discounts will come with updates like a new roof, HVAC system, plumbing system, and electric. Since these renovations lower the chance of expensive problems in the future, you’re less of a risk to the insurer and premiums will decrease as result. 

Small upgrades like installing an alarm system, smoke detectors, deadbolt locks, and water shut-off valves can also result in substantial savings. Check with your insurance provider to find out which updates receive the biggest discounts so you can determine which ones are the most cost-effective.

6. Ask about special discounts for affiliations and loyalty rewards.

Have you ever been in the military? Are you a student? A member of AARP? There’s probably a discount waiting for you! Just like the other discounts mentioned in this article, insurance providers are quick to reward you with discounts for certain group affiliations. 

Have you been with the insurance company for a while with no claims? You may be rewarded for your loyalty and clean track record. Reach out to your provider to determine which special discounts they offer. You’ll probably be surprised at the savings these can provide.

7. Change how and when you pay your premium.

Insurance companies will reward you when you make their jobs easier and reduce their costs. Changing how and when you pay your premium is a super simple way to do that. 

Pay annually or quarterly instead of monthly. Your provider accrues transaction costs each time a payment is processed. Fewer transactions means fewer costs so this would qualify you for a discount in most cases. 

Set up automatic payments. Insurers are more likely to get paid on time with automatic payments so setting them up is almost always rewarded with a discount. Plus, you’re also less likely to miss a payment and accrue late fees or increased premiums as a result. It’s a win-win for everybody.

8. Compare quotes at least once per year.

Nobody likes shopping for insurance, but online rate quotes make it fast and easy to find out if you’re paying too much. You don't even have to change policies. A quote from another insurance provider can be used as leverage with your existing provider to negotiate a lower premium. 

You likely go to the doctor for regular checkups or take your car in for regular maintenance and managing your auto insurance should be no different. A quick rate check using an online comparison tool only takes a couple minutes and could lead to immediate savings. More money in your pocket is worth a couple minutes, don’t you think?