Inflation is affecting the price of everything. Budget-conscious homeowners are cutting corners where they can. Making frugal choices at the grocery store, cutting back on unnecessary purchases, and turning down the heat a degree or two can all help. With the cost of homeowner's insurance up over 12 percent this year, it may be time to trim that bill as well. Here's what you need to know.
Your homeowner's insurance protects your home in the event of damage, fire, or theft. You need this insurance, but there are ways you can reduce your monthly cost without compromising your coverage, including:
The first step is to shop around and compare rates from different insurers. Just because you have been with the same company for years does not mean they still have the best rate. In fact, many companies offer discounts for new customers. Call around to compare rates from different insurers and find the best rate for your coverage needs.
Change Your Deductible
Your deductible is the amount you have to pay out-of-pocket before your insurance policy kicks in. In other words, if there is $1,000 worth of damage to your home and your deductible is $500, you pay the first $500, and your insurance company pays the rest. Talk to your home insurance agent because if you increase your deductible, you can lower your annual premium. However, make sure you have enough saved in an emergency fund to cover the increased deductible and are comfortable spending it in the event you need to file a claim.
Upgrades that make your home safer, like a home security system, metal roof, or new furnace, can reduce the cost of your homeowner's insurance monthly premiums because they reduce the risk of something happening to your home or family.
Some insurance companies offer a sizeable discount if you bundle multiple policies with them. Combining a homeowner's insurance policy with an auto insurance policy or two can reduce both bills.
Ask for Discounts
You never know if there is a discount if you don't ask. Your home insurance agent may offer a first-responders discount, a non-smokers discount, or even a discount for agreeing to automatic withdrawals from your bank account each month.
There are ways to reduce the cost of your homeowner's insurance without sacrificing coverage. You just have to be willing to put in the work to find it.
For more information, talk to a home insurance agent.