Cheapest Homeowners Insurance | December 2022
Cheapest Homeowners Insurance | December 2022
Homeowners insurance premiums are based on your location, payment history, property details and other factors. Here are a few aspects you can tweak to reduce the premium you pay now:
Increase Your Deductible
The lower your deductible, the higher your premium. If you raise your deductible to the highest option available, your rates should be much lower.
Remain Claims-free
If you’ve filed a claim within the past three to five years, you may see a spike in your premium. When getting a quote, address these previous claims to get the most accurate estimate. In addition to avoiding an increase in your premium, many insurers offer a discount if you remain claims-free for a period of time, usually five years.
Bundle Policies
If you have an automotive or other insurance policy already, consider shopping with that provider for your homeowners insurance too. Many companies provide a discount for opening multiple lines of insurance, with home and auto bundles being popular across the industry. The average discount is 5% to 15% according to the Insurance Information Institute, but some providers offer an even deeper cut.
Maximize Your Discounts
In addition to common discounts for remaining loss-free or bundling policies, many providers offer a suite of other discounts that you may qualify for. It’s worth checking to see if you could save money by purchasing a new home, carrying high enough limits, installing security features or even simply paying your policy in full.
Maintain Good Credit
Some companies may require you to enter your Social Security number when getting a quote to check your payment and credit history. If you have any unpaid bills or debt, your premium may be higher than average.
Update Your Property
New or recently updated homes will be made with the latest building techniques and materials, making them less likely to suffer damage as older homes built to outdated specifications. This leads insurers to offer lower premiums for new or updated constructions. On the other hand, if you have a pool or trampoline on your property, your home insurance rates could be much higher due to the liability concerns and added risks taken on by the insurer.
While it is a considerable cost up–front, replacing your roof, electrical or heating systems, discarding that trampoline or performing other major renovations and repairs could result in your home insurance premiums decreasing.
Coverage Needs
Your coverage needs may increase your homeowners insurance rates. For example, if you have a high home value, your dwelling limit will be higher, which means your insurance carrier will have to pay more to rebuild your home after a covered peril. You can often customize your coverage limits to lower your premium, if you so choose.
However, it’s unwise to decrease your limits too much or you run the risk of not having enough coverage in the event of a calamity. Likewise, if you live in a high-risk area, it will likely be cheaper in the long run to acquire the proper endorsements, such as hurricane coverage or flood insurance, than to expose yourself to heightened risk associated with these events.
Shop Around
It can take a little digging to find the cheapest homeowners insurance, but the money you can save makes it worth the effort. The best way to get an idea of how much a policy will cost you is to request a quote from several providers that you are interested in. Whether using an online quote tool or speaking with an agent, you’ll have a cost estimate for multiple policies on your property with the coverage you need. You will then be able to compare your options side by side and decide which policy is the best option for your coverage needs and budget.
Location
While you may not be willing to move cross-country to save on homeowners insurance, your state and ZIP code could dramatically affect your premiums. For example, Louisiana, Florida and Texas are often the most expensive states for home insurance due to their coastal proximity. Premiums for homes located inland, such as Arizona or Idaho, tend to be less expensive.
Find the Best and Cheapest Homeowners Insurance in Your State
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