You need homeowner's insurance to protect your home. It is an expense you must shoulder each year, just like your property taxes. However, unlike your property taxes, you have some control over the cost of your premium. In addition, there are steps you can take that will help lower or maintain your homeowner's insurance premium.
#1: Take Care of Your Credit Score
In most but not all states, insurance companies can consider your credit score as a factor for considering your homeowner's insurance rate. If you live in one of the states where your credit score is a factor that can impact your insurance, you will want to take care of your credit score. You can take care of your credit score by paying your bills on time and by not overextending and taking on too much debt. Taking care of your credit score can help with your homeowner's insurance costs.
#2: Keep with the Same Insurance Company
Next, many insurance companies reward loyalty. If you have been with the same insurance company for a long time, you may receive a special discount for being a long-term policyholder. The exact discount can vary by the insurance company and based on how long you have been a policyholder. A discount of between 5%-10% is common for long-term policyholders. You will have to stay with the same insurance provider for three to five years to access this type of discount.
#3: Use the Same Insurance Provider for Multiple Policies
Getting your insurance needs covered by the same insurance provider can help you save money. Most insurance companies will provide you with a sizeable discount when you carry multiple insurance policies with them. They like to reward you for giving you more business and will provide you with discounts on the premiums for all of your policies that you carry with them.
#4: Increase the Security of Your Home
Finally, it is essential to keep your home secure. Each step you take to secure your home fully will help to reduce your premium. These security steps are not huge; simple things such as adding smoke detectors, dead-bolt locks, burglar alarms, and monitoring systems can all increase your home's security and help lower the premium for your home.
Keeping your home's premium lower is possible by taking care of your credit score, sticking with the same insurance company, using the same provider for all your policies, and increasing the security of your home. These are easy, long-term ways to discount your homeowner's insurance policy.