10 Tips to Get Cheaper Home Insurance

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By: Aquib Nawab

Finance

1 - Shop Around for Quotes

Get quotes from at least 5 insurers. Online sites like PolicyGenius allow you to compare multiple companies at once. Comparing rates annually can save 10-15% or more. Switching insurers for a better deal saves new customers an average of $500 per year.

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2 - Raise Your Deductible

Bumping up deductible from $500 to $1000 could lower premiums 15-25%. Going to a $2500 deductible can save up to 40%. Before raising, ensure you have savings to cover the larger deductible if a claim is filed. The average home insurance claim is around $10000.

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3 - Bundle Your Policies

Combine home and auto insurance policies with the same provider. Bundling can save 10-20% on total premiums. Multi-policy discounts reward loyal customers for insuring both home and vehicle with the same insurer. Check if discounts apply when bundling renters or umbrellas too.

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4 - Improve Home Security

Add deadbolts, alarms, security cameras, lighting and clear brush around your home. Simple fixes like these can earn discounts of 5% or more each. A fully monitored security system can save up to 20% on premiums. Document upgrades with your insurance provider.

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5 - Seek Out Discounts

Ask your insurer about all possible discounts. Common options include multi-policy, new home, mature homeowner, claim-free, good payer, paperless billing, protective devices and more. Every discount earned lowers rates. Bundling discounts can add up to major savings.

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6 - Maintain Good Credit

Insurers check credit when pricing policies. Those with scores above 760 save an average of $100-200 compared to those below 600. Pay all bills on time and lower credit card balances to boost your score. Free credit reports help monitor changes. Dispute any errors immediately.

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7 - Review Coverage Annually

Meet with your agent to review dwelling and personal property limits yearly. Removing coverage for overvalued items saves up to 20%. A general rule is insure your home for rebuild cost, not market value, and personal property at 70-80% of its total value.

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8 - Pay Annually

Pay full premium upfront to avoid monthly fees that add 10-15% yearly. Set aside funds each month in a savings account to have available at renewal. Some insurers deduct 5% for paying semi-annually vs monthly.

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9 - Increase Liability Limits

Raising liability coverage above the minimum can offset rate hikes and discounts lost elsewhere. Umbrella insurance also provides added liability protection for affordable rates. Discuss appropriate coverage amounts with your insurer.

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10 - Compare Rates Regularly

Shop rates from other insurers every 1-2 years. Getting quotes is easy online or through an independent agent. Big savings can come with improved home risk like a new roof, renovated wiring, security system, lower claims and more. Switch if better deals come along.

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