Many homeowners are paying too much for their hazard insurance and that’s why we are providing the top three ways you can reduce your premiums without materially impacting your coverage. By utilizing all three tips you can cut your homeowners insurance bill by more than half!
Bundle insurance policies
Do you have an automobile insurance policy? If so, is it with the same insurance company that provides your homeowners insurance? If the answer’s no, you’re paying too much — for both policies. Almost every insurance company that sells home insurance wants its policyholders to also buy auto insurance from them. So, they offer “multi-policy discounts” to entice you. Usually, these discounts are at least 10% and some insurers apply the discounts to both the auto and the homeowners/renters policy.
Raise your deductible
Bumping your deductible from $500 to $1,000 can save you up to 20 percent on your premium! Raising it to $2,500 can save you 30 percent, and raising it to $5,000 can save you 35 percent or more. The downside, of course, is that you’ll be stuck with a bigger bill if you file a claim. But consider this: If you raise your deductible from $500 to $2,500 and your premium decreases by $325 a year, your savings will cover the deductible increase in about six years.
Good Credit = Lower Rates
Your credit score has a huge impact on your insurance costs. A poor credit score could increase your insurance premium by 35 to 40 percent or possibly result in the cancellation of your policy. On the other hand, if your credit score has improved since your policy was issued, have your agent refigure your premium based on your improved credit rating. When an insurer obtains your credit score in most cases it is considered a “soft pull” and it doesn’t even show up on your credit report.