4 Little-Known Tips to Save on Homeowners Insurance as Rates Rise
If you own a home or are in the process of buying one, you’re no doubt aware that homeowners insurance is an expense you’ll need to cover. First of all, you’ll need to put a homeowners insurance policy in place to be able to close on a mortgage. But even if you’re buying a home in cash (not an easy thing to do in today’s market, but hey, you never know), homeowners insurance is a must-have. Without it, you might face catastrophic costs in the event your home sustains damage.
Of course, like everything else (thanks, inflation), homeowners insurance is getting expensive. Plus, the longer you live in your home, the more your rates might rise.
But that doesn’t mean you have to get stuck paying a fortune of money to your insurance company. Instead, you can use these strategies to save money on your homeowners insurance policy.
1. Raise your deductible if your home is fairly new and in good shape
When it comes to homeowners insurance, premiums and deductibles tend to have an inverse relationship. The higher one is, the lower the other tends to be.
Raising your homeowners insurance deductible can be risky, because if you end up having to file a lot of claims against your policy, you’ll pay more money out of pocket each time. But if you have a fairly new home, or a home that’s well-maintained and in great condition, then you may not have to file as many claims as your average homeowner. And so in that case, raising your deductible could lead to lower premiums — and savings after all’s said and done.
2. Bundle your auto and homeowners insurance policies
Have a car? Getting your auto insurance and homeowners insurance from the same source could lead to nice savings. It pays to shop around for rates and see what bundling does for you.
3. Shop around for a better rate — even if you’ve been with the same insurance company for years
You might assume that if you’ve been with the same homeowners insurance company for a long time, they’re going to give you the best rate out there. But that’s not necessarily true. That level of loyalty may not exist, and if anything, as your home ages, your premium costs might rise.
If your current homeowners insurance company won’t drop its rate, shop around for a better deal. There’s a decent chance you’ll find one.
4. Ask for a retiree discount
People who are retired tend to spend more time at home than people who work full-time. And that’s something that could result in savings on the homeowners insurance front. If you’re home more often, that may be a deterrent to thieves, and you may be more likely to stop a fire from spreading or a water leak from getting worse. And so it’s worth asking if there’s a discount to be had.
Given the many expenses you face as a homeowner, it pays to do what you can to spend less on homeowners insurance. These moves could result in a nice amount of savings — and make it easier to keep up with your bills on a whole.
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