3 Important Ways To Lower Your Home Insurance Costs

If you own a home, one of the expenses you have to deal with is homeowner's insurance. Unfortunately, this is a monthly expense. Luckily, you can take steps to help you lower your premium and thus lower what you pay every month for homeowner's insurance.

1. Shop Around

Each insurance company will not charge the same amount for homeowner's insurance. Although most insurance companies collect the same information to assess your risk, the way they weigh and factor your risk based on that information is different.

That is why you should take a few hours every year before your policy renews and shop around to ensure your current insurance company is giving you the best possible rate.

2. Check With Your Insurance Agent

You shouldn't just let your policy auto-renew each year. Before your policy is due to renew, you will want to call your insurance agent and talk with them. You will want to review the level and types of coverage you have for your home. Go over the exclusion lists as well to see what your policy doesn't cover. Finally, review any discounts that you qualify for.

Reviewing your insurance at least once a year will allow you to adjust your policy and ensure you are getting all the discounts that you qualify for.

3. Increase Your Deductible

One of the most straightforward ways to lower your homeowner's insurance is by raising your deductible. However, when you choose your deductible amount, you need to consider how serious the damage would have to be in order to file a claim.

For example, can you handle fixing damage that is around $1,000? Then your deductible should be at least that high. Can you handle fixing damage on your own that is around $5,000? Then your deductible should be that high. Your deductible should be as high as you can afford to pay to fix the damage on your own before you need to file a claim and bring in your insurance company to help pay for the damage. This should be an amount that you could pay out-of-pocket tomorrow if necessary.

If you want to save money on your homeowner's insurance policy, you can shop around for coverage, review your policy each year to make adjustments, and set your deductible to the maximum amount you could afford to pay out-of-pocket. These are three strategies for saving money on your home insurance.