Your 5 Step Guide to Lowering Your Homeowners Insurance Policy Premium

by Ryan Ruffcorn

Homeowners insurance offers protection against losses’ and damages to a home, along with the personal property in the home. Homeowner’s insurance policies provide liability coverage, which is protection against accidents/incidents that happen in the home/ on the property of the home.

To lower costs, identifying the coverage needed helps:

Is the home in a hurricane prone area?
The amount of personal property in the home.
What about parties and events in the home; is liability coverage a sensitive factor?
What about temporary housing and the financial situation; can you afford to cover a hotel stay while the damage to your home is being repaired?

An insurance agent can offer assistance in lowering your homeowner’s insurance premium. Here are 5 considerations for lowering those costs:

Shop around; check out multiple carriers first

As an insurance broker, we can check with multiple carriers to make sure you get the best coverage at the best price.

Good credit

Having good credit can lower homeowner’s insurance premium rates. Most companies use credit history as a part their rating structure.

Look into discounts

Insurance companies offer discounts. Important to note, the same insurer nay have a discount program, but they don’t all offer the same discount- or the same amount of discount in all states.

New is sometimes better than used

Insurance companies love newer homes. The structure of a newer home will be better than the structure of an older home, and plumbing issues are less likely to happen. Usually, there’s a savings of 15% on homeowner’s insurance premiums.

Before buying, consider the cost of a homeowner’s insurance policy

Many aren’t aware of this but, it’s possible that lower premiums are associated with: buying a house close to a fire hydrant, in a neighborhood that has a professional fire department instead of a volunteer department. Also, if the homes electrical and plumbing system are less than 10 years old, it can lead to savings.

An important tip: flood damage coverage, and earthquake damage coverage are not covered by a standard homeowner’s insurance policy. If the home purchased is in a flood zone, a flood insurance policy with have to be purchased.

Another important tip: businesses that operate out of the home aren’t always covered under the homeowner’s policy. While the goal is to save money, the main focus is protection so, be sure to discuss with an agent and/or insurance company. Most homeowner’s insurance policies cover business equipment in the home, but only up to $2,500, and they offer no business liability insurance.

Never be afraid to ask insurance companies and insurance agents for what they would do to help lower the costs of the insurance premium.