11 Ways to get Cheaper Home Insurance Premiums

Many companies will offer you a discount if you have multiple policies with them.  Don’t hesitate to ask your insurance company about special rates if you use them for car insurance, home insurance, life insurance, and contents insurance. It’s generally a good idea to always get a combined home and contents insurance policy.

While asking for a multiple-policy discount, why not ask for more discounts?  Some insurance companies offer seniors discounts, no-claim discounts, marital status discounts, and nonsmoker discounts.  Ask for a list of all discounts they provide and ask if they will match discounts that other insurance companies provide.  If you have been with the company for a number of years, ask them for a loyalty discount.

Some insurance companies end up taking their existing consumers for granted.  Make sure that they are not offering new customers any discounts on their insurance premiums that you are missing out on. If you find that new customers are getting benefits that you are not, contact your insurer immediately and demand the same deal!

If you recently bought your home for $250,000, you won’t need that much coverage as it includes the value of the land.  Also, make sure you haven’t over-insured the contents inside of your home and make certain you keep an eye on the declining value of your assets.  You could potentially reduce the value of your content policy in line with the reduced value of your assets and save some money.

Perhaps the simplest way to lower your insurance costs, lower your deductible.  That means when you do make a claim your costs will be higher, but for most people, a claim on a home and contents is quite rare.

Avoid claiming small losses. For example, if your house is broken into and your old television that is worth $400 gets stolen, reconsider claiming on it.  For starters, your deductible might be $300 then you have to consider the fact you lose any no claim bonus.  You could be affecting the cost of insurance premiums for the next four or five years by making a claim.

If you have any add-ons with your insurance policy like additional jewelry insurance or accidental damage cover, periodically review them.   If you have decided to sell most of your jewelry or store it in a bank deposit vault, you could save some money on your insurance by skipping jewelry insurance.  If your home is well maintained and unlikely to be damaged by accidents like damage to the mains services, you may not need an add-on like accidental insurance coverage. If you once had full accidental damage insurance that included pet damage, but your pet has died, make sure you remove it because these small add-ons all contribute their bit to the cost of the policy.

Make sure your home is secure and if possible, install a security alarm.  Your insurance company will give you a discount if you make them aware of the various security measures you have taken.

Insurance companies calculate your insurance premiums based on your risk profile.  With home insurance, that includes the condition of the home, the location of the home, the crime rate in that area, the type of home, and the risk of natural disasters.  Interestingly, many insurance companies also use your credit rating as an indicator of your risk profile, so if you maintain a good credit rating you can save on insurance.

If you demonstrate to your insurer that your home is fully prepared for natural disasters you can also save on insurance premiums.

Finally, the last way to save on home insurance is by staying at home.  If you leave your home empty for 4 or more weeks, some insurers will consider that an increased risk for burglary and charge you higher premiums.