Explains the Finer Points of Saving Money on Homeowner’s Insurance

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Homeowners’ insurance premiums can vary significantly. The choice of the insurance carrier and the size of the home are two factors that play a role in the rate a person pays. While certain factors that affect the rate cannot be changed, such as the home size, there are ways a homeowner can keep this premium as low as possible. The following methods are ones every homeowner should look into.

Bundle Policies

Many people work with several insurers. They use one company for car insurance, a second insurer for their home, and a third provider for life insurance. Speak with these insurance providers to ask if they offer multiple types of policies. Those that do may offer a discount if the insured purchases multiple policies or bundles them. The savings a person might see by taking this one simple step can be significant, so it never hurts to ask for additional info. However, ensure the coverage will remain the same when changing providers to avoid unpleasant surprises in the future.

Prepare for Premium Increases

A person often asks, “How much is homeowners insurance?” Once they learn the current premium price, they make a decision regarding whether to obtain the coverage. Homeowners insurance, however, differs from life insurance and car insurance in that it can change over time. One factor an insurer looks at when calculating the premium is the cost to rebuild the home.

According to, that figure depends in large part on the cost of building materials and any improvements made to the home. If the value of the residence changes significantly, the homeowner’s insurance premium may change too, so a low price when the policy is purchased doesn’t mean a low price throughout the ownership of the home.

Raise the Deductible

When a homeowner files a claim with the insurance company for a covered loss, they must first pay a deductible before the insurer will pay its share. The homeowner has some control over how much this deductible is. The higher the deductible, the lower the insurance premium.

Before taking this step, the homeowner needs to do two things. First, they need to learn whether the insurer charges a separate deductible for damage caused by a natural disaster. Next, they need to establish a separate emergency fund that will cover the cost of the deductible. This emergency fund should remain idle until a claim must be filed, as this guarantees the money for the deductible will be readily available regardless of how much it is.

Avoid Filing a Claim for Minor Damage

Homeowners should not turn to their insurance companies for minor claims, as doing so could raise the premium significantly. For example, a wind damage claim could raise the annual premium by nine percent, on average, according to NerdWallet. Filing claims for minor damage could lead to costly rate increases that exceed the cost of the repairs. However, when talking to Kin Insurance or any insurance provider, ask about claim-free discounts, as a person might get a rate decrease if they don’t file a claim for a certain period.

Speak with an insurance agent to learn about other possible discounts. Payment discounts and military discounts are two to ask about. The insurance agent can share other ways to bring rates down, so it never hurts to ask.

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