Insurance premiums naturally rise each year to account for inflation and the cost of materials to rebuild your home, but there are other factors that play into it as well. If you are looking for a way to lower your home insurance premium, try following these tips.
Increase Your Home's Security
A home that is not very secure will put it more at risk for potential theft, and your insurance company will charge you a higher premium because of it. Small thing such as adding deadbolts to every exterior door, or adding a security system, can reduce the amount that you pay for home insurance.
Maintain A High Credit Score
Insurance companies do consider credit scores when they decide how much you will pay for your home insurance. A person with a low credit score may be viewed as being less responsible than a person with a high credit score, meaning the former will be more likely to submit a claim to the insurance company. Keep your credit score high, and it could translate into a lower premium.
Consolidate All Your Insurance Policies
Many insurance providers will give you a discount if you have multiple policies with them. The most common way to do this is by consolidating both automotive and home insurance, since many homeowners need both policies. Adding recreational vehicle insurance, life insurance, and even identify theft protection services can reduce your overall premiums.
Dispute Your Home's Replacement Costs
Your insurance provider may be basing your insurance premium off a replacement cost that is unreasonably high. You can have your home appraised to determine how much it would actually cost to rebuild your home in a total loss scenario. Keep in mind that you do want your home's appraised value to be accurate. If your home's replacement cost is too low, you may not get enough money from the insurance company in a situation where you actually need to rebuild your home.
Raise Your Deductible
When selecting your policy, you have the option of picking how much you will pay out of pocket before your insurance company starts paying out. A lower out of pocket costs will mean a higher home insurance premium each year. Contact your agent about a high deductible policy to learn more about how much it will lower your premium. You can easily make the money back by having several years where you do not make a claim.