Five Ways to Lower your Homeowners Insurance Premium

We all know that we need homeowners insurance, whether to satisfy the terms of our mortgage or simply to protect against some of the what-ifs that come with home ownership. But at the same time, we’re all also looking for ways to conserve resources. So it’s good to know that there are ways to save money without sacrificing the invaluable protection that homeowners insurance offers. Let’s get into it.

What Is Homeowners Insurance?

You likely already have a set definition in your mind. More or less homeowners insurance is an important investment that helps to protect your home, belongings, and financial well-being from unexpected events. Your homeowners insurance policy lays out coverage limits and amounts and what you can expect from your insurance provider should you suffer a covered loss.

Cost for home insurance in Kent and elsewhere can vary, of course, like any other type of insurance policy. Premiums often fluctuate due to factors like inflation, weather patterns, and rebuilding costs, among others. Understanding what influences your premium can help you to make informed decisions while maintaining the coverage you need. At the same time, there are steps that homeowners can take to potentially reduce their insurance costs.

1. Bundle Insurance Policies

One of the easiest ways to save on your overall insurance premium costs may be purchasing multiple policies from the same insurance company. The most common bundle includes both home and auto insurance, but umbrella insurance and recreational vehicle insurance are also common pairings.

Benefits to this option may include things like multi-policy discounts but it can also offer simplified policy management and one point of contact for claims, billing and insurance questions. Every insurer has their own protocol, so it’s worth discussing available options with your trusted local agent. Exact discounts often depend heavily on your personal profile, and, truth be told, bundling does not always guarantee the cheapest outcome. It’s important to work with an experienced agent to ensure that you find the best deal for your needs and situation. When done right, bundling can certainly save you some cash.

2. Increase Deductibles

A deductible is the amount you pay out of pocket before your insurance coverage begins for a covered loss that would prompt you to file a claim. There’s a lot to know when it comes to deductibles, but the basic truth is that lower deductibles typically mean higher premiums. The inverse is also true–choosing a higher deductible may lower your monthly or annual premium and reduce long-term insurance costs if you rarely file claims. That said, the deductible should never be so high that it would be a burden or hardship to pay in the event that you do need to file a large claim. It’s important to mention that for folks who live in a disaster-prone area, your policy may include a separate deductible for certain perils. Work with your trusted agent to ensure that the deductible you select is reasonable and practical while still helping you to save on your premium. 

3. Improve Your Home's Safety and Security

The more secure and protected your home, the less likelihood that a break-in or theft will occur, and that reduces your chance of filing a major claim. Many insurance companies will offer discounts for features that you install or implement–like monitored security and smart home systems, smoke and carbon monoxide detectors, fire sprinklers, deadbolt locks, storm-resistant roofing and more–that can help to reduce the likelihood or severity of claims. These improvements may not only help you to qualify for discounts but can also protect your home from costly damage. But before you install anything, it’s a good idea to contact your insurance agent and find out if your provider has specific recommendations or preferred systems.

4. Maintain Your Home And Address Problems Early On

Routine maintenance truly is the key to most long term issues that can result in costly insurance claims. For instance, taking the time to have a roof inspected regularly and repairing roof damage promptly, keeping gutters and downspouts clear, and trimming trees near the home can go far to avoiding preventable roofing claims. By the same token, inspecting plumbing for leaks and routinely servicing your HVAC system and maintaining your home’s electrical system can go far to help prevent the risk of water damage, fire hazards, and other costly problems. This is all just part of responsible home ownership, but these preventive maintenance practices can often also help you to save on your homeowners insurance premiums.

5. Review Your Policy And Coverage Annually

While it may not seem like it, a regular policy review can end up saving you a lot in the end. Why? Because life changes fast, and so will your insurance needs. When you consult with a local agent for an annual policy review they can help to ensure that you are receiving all available discounts. It’s also important to let your agent know about any upgrades and improvements that could impact your home's current value. That will help them to evaluate your policy and make sure not only that you aren't paying for unnecessary endorsements, but also that you won’t be shortchanged in the event of a covered loss, either. It’s also a good opportunity to ensure that your deductible still fits your financial situation. Remember too that insurance providers regularly come out with new insurance products and savings opportunities, and without a regular chat with your agent, you may not learn about them. A trusted insurance agent can explain your options and help to identify opportunities to save while also ensuring that you are able to maintain appropriate protection for your needs and situation.

Additional Ways To Save

While the above-mentioned five ways to save are the most common across the board, these are by no means the only ways to help lower your homeowners insurance premium. Oftentimes improving your credit score and avoiding the frequent filing of small claims can also help to positively impact future premiums. It’s worth discussing your options with your insurance agent before filing a claim if the cost is not much more than your deductible. You may also be in line for discounts if you’re in a new home or if you’ve added a new roof. And if you’ve been with the same company for a long time, or if you’ve never filed a claim, loyalty and claims-free discounts may be available. You can also often save by opting in to paperless billing or setting up automatic payments, and by paying in one lump sum versus monthly installments. Seniors and retirees may also have specific discounts available to them. 

Common Mistakes To Avoid

When choosing the right homeowners coverage, it can be easy to be swayed by price alone, but homeowners really need to be focused on value. The lowest premium isn't always the best value if it leaves important gaps in your coverage. Another common mistake is forgetting to update a homeowners policy after renovations are made and home value has increased–that could leave you paying a lot out of pocket in the event of a major loss. Many homeowners also get so caught up with the business of life that they may overlook or neglect home maintenance, always putting it off for another day. But this practice can increase the likelihood of claims and expensive repairs while also making a policyholder ineligible for related discounts.

But more than anything else, trying to wrangle homeowners insurance options on your own and not working with a local, experienced agent has to be the number one mistake you could make. Local independent agents will be able to easily and quickly compare coverage options from multiple insurance carriers, explain policy differences, help to identify discounts, recommend coverage based on your home's unique risks and review your policy as your needs change. They’ll help you to find the right balance between cost and protection, ensuring that you’re covered from every angle but not paying more than you need to. It’s always worth working with an expert.

Work With Our Trusted Insurance Agency

Lowering your homeowners insurance premium doesn't always mean reducing your coverage. In many cases, improving your home's safety and reviewing your policy can lead to equally meaningful savings. But this starts with proactive planning and thorough assessment. Bundling policies, improving home safety, increasing your deductible when appropriate, staying on top of maintenance, and reviewing your coverage annually can all contribute to potential savings. And always working with a knowledgeable insurance professional can help to ensure that you're protecting both your home and your budget.

An independent insurance agency like BK Insurance & Financial Services offers personalized coverage recommendations, access to a range of insurance providers, help understanding complex policy details and ongoing support, especially during the claims process. If you haven’t reviewed your homeowners policy recently, what are you waiting for? Contact us and schedule your annual review. In the market for home insurance in Kent? Contact us for a free quote or to speak with an experienced agent. We’re here to help and protect.