- Shop Around
Shopping around can save you money, but be cautious, if something sounds too good to be true, it probably is. Make sure you aren’t agreeing to give up coverage or shorten your policy period when signing up for that great deal. One of the best ways to shop around is to visit an independent insurance agency where you can receive several quotes offering competitive rates. That way, you have the resources available to you and can ask questions.
- Raise the Deductible
Ask your agent how much you can save by increasing the deductible on your policy. It can save you a significant amount, but make sure you are prepared to pay the deductible in the event of a loss. You don’t want to find yourself unable to afford a necessary repair due to the fact that you cannot afford the deductible.
- Add Reinforcements
Adding storm shutters, reinforcing a roof or other wind mitigation improvements can help lower your insurance cost, lower the possibility of loss and protect your family.
- Don't Insure Your Land
Make sure that you have your agent work with you to determine the replacement cost of your home. In the event of a loss, even a catastrophic total loss, you still own the property on which your home sits. Insurance carriers in most cases do not insure your land, only the structures on it, so be sure you are only paying for what is actually covered in your policy.
- Avoid Submitting Small Claims
Claims can raise your premiums and frequent claims can cause the insurance company to cancel your policy. If it is a small claim and you can pay out of pocket, you may end up saving money overall.
- Improve Your Security
Adding hard-wired smoke detectors and a centrally monitored burglar and fire alarm can reduce your premiums. Even adding deadbolt style locks may save you money. More importantly taking these steps can help save lives and protect assets within your home.
- Clean Up Your Credit Report
The Fair Credit Reporting Act (FCRA), states that insurance companies have a "permissible purpose" in viewing you credit history. Insurance companies have discovered that generally speaking a higher credit score translates to less risk and therefore lower rates. There are certainly a lot of good reasons to do whatever we can to improve our credit score and monitor it to make sure it is accurate. Saving money on your insurance premiums may be yet another reason to do so.
- Consolidate and Save
Some insurance companies will give you discounts on your premiums if you have more than one type of insurance with them. Often the savings is in the range of 10 to 20%. It is important that you take this savings into account, but also calculate your insurance costs when purchasing separate policies from different companies and compare.
- Know Your Coverage
For most of us, our home is our largest asset and biggest investment. Make sure that your insurance adequately protects you from risks you cannot afford to cover yourself. It is also important to make sure it covers any home improvements you have made, major purchases, artwork, jewelry, and the increased cost of rebuilding.
- Keep Your Insurance Coverage Up to Date
Every year, before your homeowner’s insurance is set to renew, review the current policy and call your insurance agent to discuss any changes in your situation that occurred during the year. You may need to make changes to your current policy or perhaps another carrier would be a better fit and may save you money on your premium payments.