How to Save on Homeowners Insurance

Homeownership can be exciting and rewarding, but it can also be downright expensive. While you need to have adequate coverage in all areas for what’s likely the biggest investment of your life, it doesn’t necessarily have to break the bank. One major advantage to shopping around for a policy first is that it can save you a ton of money.

Fortunately, there are a number of simple ways to slash your homeowners insurance premium, from upgrading your home to paying your premium in full. Working with an independent insurance agent can not only make the process much easier, but also help you find the policy that gets you the most bang for your buck. Here’s a look at a handful of ways to save that you can start on today.

What Is Homeowners Insurance?

Homeowners insurance provides protection against a variety of damage that could be done to your home. From wind and hail to fires, lightning, water damage, burglary, and more, if a covered disaster messes up your house, home insurance steps in. Your policy will reimburse you for repairs or rebuilding of your property up to your policy's limits if the incident was covered.

What Does Home Insurance Cost?

The average annual cost of homeowners insurance is $1,404 nationwide. But home insurance costs can vary by state and even down to each specific city, based on hazards like floods and earthquakes and other factors like local property values and crime rates. An independent insurance agent can help you find affordable coverage in your town.

When Should I Buy Homeowners Insurance?

As soon as you decide you’re buying a home and put it on paper, you should start shopping for home insurance. It is not mandated by law, but you'd have a tough time finding a mortgage lender who'd finance your home without it.

Ideally, give yourself enough time to shop for insurance quotes before you close on your mortgage. You usually have a small amount of time, about a month, before you have to provide proof of insurance. You will be required to show proof that you’ve paid for a year of insurance before closing.

Three Easy Ways to Save Money on Home Insurance

Saving money on home insurance can be simple when you know what to do. Here are a few simple hacks to bring down your homeowners insurance premiums with ease.

Option 1: Save Money on Your Homeowners Premiums by Installing Safety Features

Insurance is all about risk protection, so the less of a risk your home is in the eyes of your insurance company, the lower your premiums are likely to be. Luckily, this also applies if your home becomes safer through the addition of security features. Even if you’ve already got a homeowners insurance policy in place, speak with your independent insurance agent after making any of these additions to your home. You might just be able to start saving.

Safety features that could help you save money on your premium:

Burglar alarms: Theft is a huge concern for insurance companies. If you install a burglar alarm or any kind of security system in your home, you can greatly reduce your risk of break-ins and theft. As a result, your insurance company is likely to reward you with a discount.
Fire extinguishers: Insurance companies’ number one concern when it comes to homes is fire damage. Any measures you take to reduce your risk of fire damage are likely to also reduce your home insurance premium. This includes adding a fire extinguisher.
Sprinkler systems: Similar to the previous example, only a sprinkler system is a much more effective means of preventing fire damage and therefore comes with the potential for receiving a more significant discount on your home insurance.
Reinforced locks: While your home already comes with locks on the doors, taking the time to switch them to more secure versions can lead to an insurance discount. Beyond standard deadbolts and chains, you can install smart locks, which correspond to an app on your phone. Smart locks also allow for keyless entry and respond to your commands even while you’re away from the home.
Fences and gates: Insurance companies tend to favor homes within gated communities because of the obvious reduced risk of break-ins. However, just installing a fence with a secure gate around your home can seriously help to protect your property, and in turn land you a nice discount on your home insurance premium.

This list of home safety features you can add is far from extensive. Talk to your independent insurance agent about other options for protecting your home and potentially scoring a discount on your homeowners insurance premium. Just keep in mind that not every insurance company offers the same discounts.

Option 2: Save Money on Your Homeowners Premiums by Upgrading Your Home

If your home is already extra safe and secure, don’t worry. There are still ways you can save more money on your homeowners premium. Plenty of common home upgrades that homeowners choose to make are attractive in the eyes of insurance companies. Taking on one of these projects today could help you start saving money on your policy tomorrow.

Home upgrades that could help you save money on your premium:

Upgrade to a hail-resistant roof: This one only applies if you live in an area that’s prone to hailstorms. Hail damage is one of the top homeowners insurance claims, and roofs are the most vulnerable point when it comes to this type of disaster. If you upgrade your roof to hail-resistant shingles, your insurance company is likely to reward you with a significant discount.
Upgrade to storm windows: This option closely follows in the footsteps of the previous upgrade. Since windstorms and hail are such a huge risk to homeowners, upgrading your home’s windows to storm-resistant glass can not only reduce your risk of damage in the event of a natural disaster, but also reduce your premium.
Upgrade to storm doors: Last in the storm protection category is the option to upgrade to heavy-duty doors on your main house and garage. Hurricane-rated doors and garage doors can not only protect your home, belongings, and vehicles, but also help protect your wallet if your insurance company cuts you slack on the cost of your policy.
Upgrade your plumbing: Another thing insurance companies love to see is up-to-date, efficient plumbing systems. Updating your plumbing can already reward you on your premium, but you can also take it a step further and have water-shutoff features or water leak sensors installed. The less risk your home has of water damage, the better.
Upgrade your paint job: When your home is more physically attractive, not only can you as the homeowner feel a greater sense of pride, but your home insurance company will also be pleased. If you’re planning to slap a fresh coat of paint on your home, check in with your independent insurance agent about potential premium discounts.
Upgrade your backyard: If your yard is full of unsafe fixtures like trampolines, old swing sets, or pools, you might consider removing them and replacing them with more grass or a nice, peaceful garden. The fewer risk factors on your property, the better. Insurance companies often reward homeowners who remove potential safety hazards from their lawns by slashing their premiums.

Really, there are many ways you can upgrade your home and many ways to save on your homeowners insurance premium. If you’re not interested in making any of these upgrades and are looking for more ideas, call up your independent insurance agent for further suggestions. They’ll be able to check in with your specific homeowners insurance company to see what discounts may be available.

Option 3: Save Money on Your Homeowners Premiums by Paying the Year in Full

A simple way to save money on your homeowners insurance is to pay for an entire year of premiums all at once. If you opt to make monthly premium payments, your insurance company is likely to tack on a bit of an extra fee to process the additional payments. Paying up-front with one lump sum can alleviate this extra cost to your premium. Plus, then you only have to make one payment. It’s basically a win-win.

Even More Ways to Save on Home Insurance

While your home insurance premium can vary by several hundred dollars depending on the size of your home and insurance company, there are still more ways to save money. In addition to the above list, keep these pointers in mind, too.

Shop around: Let your independent insurance agent pull a variety of quotes for you. Different companies will offer different policies and the difference in price could be significant.
Increase your deductible: Have you ever noticed with health insurance that the higher your deductible, the lower your premium? The same goes with home insurance. Raising your deductible could bring your premium down.
Bundle your policies: Combining your home insurance with other insurance policies like auto insurance can reduce your price.
Understand the real value of your home: Homeowners insurance is designed to rebuild your home, which means the coverage is designed to cover the cost of rebuilding your home, not your home’s market value. If you insure the total value, you may pay a higher premium.
Take advantage of group discounts: If you’re a member of certain associations or professions, you may qualify for a group discount. Common ones are military, teacher, and government employee discounts.
Stay loyal to your insurer: When it comes to insurance, loyalty rewards. Staying with the same insurance company for an extended period of time can result in reduced insurance premiums.
Review your policy every year: Property value changes from year to year. Have your independent insurance agent review your policy every year to see if there are any additional home insurance discounts and savings available.

Your independent insurance agent knows even more ways you can save money on your home insurance premiums, beyond what's listed here.

What Other Adjustments Can I Make to My Home to Save Money?

Ultimately, an insurance company will determine your home insurance rate based on the chance that your home could be damaged and what it would cost your insurance company if it was damaged. So, if you live somewhere that is prone to fires, installing proper sprinkler coverage could lower your premium. Similarly, if your home is at high risk of a hurricane, installing shutters can affect your rate.

Here are some additional upgrades and adjustments that can lower your rate:

Sprinklers: A good sprinkler system can put out a fire much faster than waiting for the fire department to get to your house.
Fire extinguisher: Keeping a fire extinguisher handy also helps end fires quickly.
Being near a fire hydrant: You can’t always control this, but the closer you are to a fire hydrant, the faster fires can be put out.
Being near a fire station: The less the distance between you and firefighters, the faster they can get to you. Fires are one of the most common causes of home damage, so taking necessary precautions can help you save money.
Security system: Installing a security system helps keep thieves out of your home. Home insurance covers theft, so preventing theft nets you a discount.
New home: New homes typically come with updated plumbing and electrical systems and have less risk of dangers like asbestos.
Tidy yard: A well-maintained yard with minimal shrubs, trimmed grass, and trees lowers fire risk and shows the insurance company that you care about your property.

Making some simple upgrades and adjustments to your home could easily help you save hundreds on your home insurance premiums each year.

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