How to Save Money on Homeowners Insurance

To take out a mortgage to purchase a home, you need to pay for homeowners’ insurance, and shopping for a great price with great coverage is essential.  You will find that some insurance companies offer more competitive policies and better coverage than others.

Cheaper is not always better and making sure you are well insured for what you need is rule #1.  If you are looking for additional ways to reduce your homeowner’s insurance expenses, here are some quick tips.

• Raise your deductible. Another way you can reduce the cost of a homeowners insurance policy is to increase the size of the deductible as long as it remains reasonable and affordable. With a higher deductible, you will need to cover more costs out of your pocket before your insurance kicks in. However, the costs of maintaining your policy will decrease.

• Only insure your home for the cost to rebuild not for market value.  Most carriers will not allow you to over-insure your property but it is always wise to ask about their replacement cost for your home.

• Bundle your home and auto insurance policies. This common technique for decreasing insurance rates is to purchase these policies from the same provider, bundling them together. You can ask your insurance company whether there is a discount for doing this.

• Install a security system. If your home lacks one, break-ins are more likely, along with vandalism and theft.  With that lower-risk profile, you might earn yourself a discount on your insurance.

• Avoid making small claims. Some claims are not worth making if they raise your premium.  So, if you do not make small claims frequently, you might have a more competitively priced policy.

• Make upgrades to your house. Upgrading outdated electrical, plumbing, and other systems and reporting them to the insurance provider may be enough to help decrease your rates. You also can make improvements to protect against earthquakes and add materials to your home and property that protect against fires. If the house becomes less vulnerable to damage, it stands to reason that your policy may become more affordable.

• Install smoke alarms and sprinklers. Chances are good that when you buy a home, it will already have smoke alarms and possibly a sprinkler system installed. But there are exceptions, especially in the cases of vintage homes. If you have purchased such a home, try installing these systems and making other improvements to fireproof your home as much as possible. Doing so may help you get a more competitive insurance rate.

• Call your insurance agent once a year, or when you need to make changes, to review your policy and make sure you have the best coverage, current discounts, and best value for your money.  

As you can see, there are many opportunities to save on your homeowners’ insurance costs. You just need to spend some time checking quotes and be willing to potentially do some work to improve your home.

Blue Square Mortgage Can Help Get Your Homeowners Insurance Questions Answered and Recommend Great Local Agents

If you have additional questions about homeowners’ insurance, we are here to help. To schedule a consultation, please give us a call now at (206) 352-6453. We work with customers in Seattle and throughout Washington and Colorado State.