Over the course of the past decade, the cost of homeowners insurance nationwide has increased by an average of 50%. According to ValuePenguin, the average Arizona homeowner will pay around $700 for their homeowners insurance this year. All things considered, this rate is pennies on the dollar compared to the amount that it would cost to replace your home. As hard-working citizens we’re all very fond of saving money every chance we get, and fortunately for us, there’s plenty of ways to save money on homeowner’s insurance.
1. Increase/maintain a good credit score:
Most insurance carriers will take your credit score into account when determining the amount you will pay for your premiums. Maintaining a good credit score is valuable for many other aspects of life, and it can also reduce the amount you pay for insurance. Read this guide by Bankrate to learn about 7 ways you can improve your credit score.
2. Bundle your insurance policies:
Many companies will offer you a discount from buying multiple policies from them, such as having your home and auto under the same company. This can range from 5 to 15 percent off your premium. Talk to your agent and see if this would be a good option for you.
3. Increase your deductible:
Your deductible is the amount of money you have to pay toward a loss before your insurance kicks in. Having a higher deductible will result in you paying less in premiums and can allow you to keep a significant amount of money in your pocket, even compared to the amount you save by bundling.
4. Improve the security of your home:
The more likely you are to file a claim on your homeowners insurance, the more you’re going to pay. Improving the security of your home, such as setting up burglar alarms and deadbolt locks, can qualify you for a discount. Check out our previous blog post detailing how to improve the security of your home.
Prior to buying a home it can be beneficial to consider factors such as the neighborhood crime rate, as that can also affect your rates.
5. Make your home more resistant to fire and natural disasters:
Same as above, decreasing the likelihood that you will file a claim will help you save money on your premiums. Updating your electrical systems and installing storm shutters are two steps to take to decrease the odds of you filing a claim.
Similar to improving the security of your home, purchasing a home that’s in a flood plain or in an area where natural disasters are common can result in higher rates, while living near a fire station can decrease them.
6. Ask about other discounts:
Talk with your agent about any other discounts you are eligible for or could be eligible for. These can include:
- Not smoking
- Installing sensors that detect gas or water leaks
- Having a claim-free history
- Living in a gated community
And many more!