There is much more to finding a cheap home insurance policy than just selecting a good insurer. Here are seven other ways you can reduce your homeowners premiums substantially.
Beef up your home's security. Enhancing the security and safety of your home will help you obtain the cheapest home insurance policy possible. Items like smoke detectors, deadbolt locks, and burglar/fire alarms can qualify you for discounts of up to 5% each depending on your insurer. Before you install these features, check with your insurer to make sure your equipment will qualify for a discount.
Stop smoking. Smoking materials are the number-one cause of residential fire deaths in the United States and are responsible for over 23,000 fires annually. Certain home insurers may provide a discount on your homeowners policy if no one in the house smokes, so if you do smoke, consider quitting for your own safety and the potential savings.
Stick with your insurer. Long-time customers are more likely to qualify for a cheap home insurance policy than new customers. Some insurers reward policyholders with 5% discounts after they have stayed with the insurer for three to five years.
Raise that deductible. The deductible is the amount of the loss you have to pay for out of pocket before your home insurance benefits kick in. The higher your deductible is, the cheaper your home insurance policy will be. Consider the savings if you raise your deductible to: $500, save up to 12% on premiums; $1000, save up to 24%; $2500, save up to 30%; $5000, save up to 37%
Optimize your payment options. Your insurer may offer you discounts on your cheap home insurance policy if you pay your deductible in full every year or six months rather than paying it in monthly installments. Similarly, you might qualify for a discount if you sign up for electronic payments and paperless billing.
Shop for quotes. Try to get three or four quotes on a cheap home insurance policy before you make your coverage decisions. The more offers you get, the more likely you are to find competitive premiums. Compare the offers you receive to determine which insurer provides the highest-quality coverage at the most reasonable price.
Review your credit rating. A poor credit rating may preclude you from qualifying for a cheap home insurance policy. Order your free credit report before you begin shopping for home insurance coverage. If you have serious credit problems, look for homeowners insurance companies that do not consider credit scores when determining rates.
