Ways to Save Money on Homeowners Insurance

Homeowners insurance premiums can be expensive. So we want to share some of the ways you may be able to save on your home insurance in Lynnwood, WA, or wherever you reside.

Bundle Insurance Policies

If your home insurance and auto insurance providers are different, you may be able to save money by finding a company who can offer you both. This is fairly easy to find, as most homeowners insurance providers also have auto insurance options. These companies often offer multi-policy discounts to entice clients to have both insurance policies through them. In most cases, the discount offered is around 10%.

Raise Your Deductible

Deductibles are the amount you will be required to pay before your insurance will kick in. If you want to save on your premium each year, it is best to have a high deductible. The downfall of this is that in the event that a claim is filed, the amount you’ll pay out of pocket will be much higher.

If you are simply unable to afford a high premium, this may be a great option for you. Of course, you will want to assess your risk for environmental damages as well as the condition of your home before you choose this option.

Buy a New Home

Homeowners insurance companies offer discounts for policies on newer homes. In some cases, companies offer a 15% discount on a new home. The reason that insurance companies do this is that the chances for claims on faulty appliances, burst pipes, and other common problems in older homes are lower in newer homes. If you are in the market for a home, buying new can be a great opportunity for keeping homeowners insurance premiums low.

Check for Location Discounts

Make sure that you’re getting the discounts you should be getting on your current homeowners policy. If your house is located near a fire station, you can get a discount for that. This is also true if you live near a fire hydrant.

Conversely, if you live in an area that is prone to flooding or other environmental disasters like earthquakes, insurance policies could be hundreds of dollars more every year. The location of your home will greatly influence the cost of your homeowners insurance.

Keep Your Credit Score High

If you can maintain a good credit score, you’ll likely get a better homeowners insurance rate. Many insurance companies look at credit scores when structuring their prices. Along with checking these scores, insurance companies will also look at how long you have stayed with previous insurance providers. If you’ve stayed with a company for more than three years, you may get a 5 to 10 percent discount on your premium.