Tips to save money on homeowners insurance

Fact: 90% of homeowners in 2023 saw their annual premium increase compared to the previous year. 

Also, a fact: The last thing you need is something else in your world to get more expensive. 

I know because I’m right there with you. 

But unlike the price of eggs or gas, there are a few simple things you (and a great local agent) can do to keep tabs on your homeowner’s insurance costs: 

Raise Your Deductible

Raising your deductible can reduce your insurance cost for several reasons. First and foremost, it signals to your insurance provider that you are willing to assume a higher portion of the financial risk in the event of a claim. This increased financial responsibility typically leads insurers to lower your premium payments as a reward for taking on more of the upfront cost. A higher deductible can encourage policyholders to be more cautious and avoid filing minor claims, which can, in turn, help maintain a favorable claims history and prevent potential premium hikes. However, it’s important to strike a balance between a deductible you can comfortably afford and one that provides meaningful savings, as an excessively high deductible could leave you financially vulnerable in the event of a significant loss. Careful consideration of your financial situation and risk tolerance is essential when adjusting your insurance deductible.

Drop Non-Essential Coverage

Insurance policies often include various optional coverages that go beyond the core protection you need. By eliminating these non-essential add-ons, you can lower your premium payments significantly. This approach is particularly valuable when you have overlapping or redundant coverage from multiple policies, eliminating unnecessary expenses. However, it’s crucial to carefully assess the potential consequences of dropping any coverage to ensure that you’re not exposing yourself to undue risk. Balancing cost savings with adequate protection remains the key consideration when making decisions about non-essential coverage, ensuring that you have the right level of insurance to meet your needs while optimizing your budget.

Shop Around Every Year

Shopping around for insurance rates every year is essential because the insurance landscape is constantly changing. Insurance companies regularly adjust their pricing models, coverage options, and discounts, which means that the policy that was the best fit and most cost-effective for you last year may no longer be the most favorable option today. By annually reviewing and comparing insurance rates, you can take advantage of potential cost savings and ensure that you have the most up-to-date coverage to meet your evolving needs. Moreover, life circumstances change over time, such as moving to a different location, acquiring new assets, or experiencing changes in your driving habits, all of which can impact your insurance requirements. Continually shopping for insurance rates allows you to change your coverage and secure the most competitive prices.

If you’d like to chat more about how to save as a homeowner, I’d love to connect! At the same time, I’ll pass along my favorite local insurance agents who will gladly shop multiple carriers to get you the coverage you need at rates you feel great about. 

Source: https://www.policygenius.com/homeowners-insurance/how-much-does-homeowners-insurance-cost/