7 Tips to Get a Competitive Rate on Homeowners Insurance

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Updated on April 17th, 2023

Reading Time: 4 minutes

homeowners insurance

Owning your own home can be very rewarding, but it also comes with an assortment of responsibilities. This includes ensuring your home has adequate coverage against theft and natural disasters, which means buying homeowners insurance. Of course you want a comprehensive policy that will protect your biggest investment, but there’s no need to pay more than necessary.

Whether you’re looking for a new homeowners policy, or want to reduce the premium of your current one, here are seven simple ways to get the best rate.

Tip 1: Do your homework.

You didn’t get a dime for doing your homework in school, but it can pay off big time when it comes to buying homeowners insurance. Go online or call several reputable homeowners insurance companies to compare coverage and get quotes. Then evaluate policies side by side and “apples to apples.” Keep in mind, your home is likely your most valuable asset; a radically inexpensive policy may not adequately protect your home.

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Tip 2: Don’t hesitate to negotiate.

The insurance industry is quite competitive, and that can work in your favor. Once you’ve narrowed down your choices to two or three companies, arm yourself with the details of each policy and negotiate for the most competitive rate.

Tip 3: Raise your deductible.

Typically, the lower your insurance policy deductible (the amount you pay before your insurance kicks in) the higher your insurance premium. Likewise, the higher your policy deductible, the lower your insurance policy premium. For example, let’s say you raise your deductible from $500 to $1,000. You could save as much as 25 percent on your insurance premium.

Tip 4: Get a monitored home security system.

You already know a monitored home security system can help protect your family and possessions, but are you aware it can also save you money on your homeowners insurance premium? Insurance companies may reward you with a discount of 15 percent or more if your home is protected by a monitored home security system. Here’s why: Homes protected by a monitored home security system are three times less likely to be burglarized than those without one. So there’s less chance you’ll file a pricey burglary claim. If you have a security system or you’re thinking of getting one, ask your insurance carrier if they will give you a discount. Read unbiased reviews and compare your security options at SafeWise.com.

Tip 5: Consolidate insurance policies.

Another easy way to reduce your homeowners insurance premium is to consolidate various insurance policies. Find out what type of insurance products your provider offers and ask how much you could save if you purchase more than one product from them, such as your homeowners and auto policies. Most companies will reward you with a lower rate on both policies. As a bonus, you’ll enjoy the convenience of paying one consolidated bill instead of two or more.

Tip 6: Don’t over-insure your home.

You certainly don’t want to run the risk of being under-insured (which means your policy doesn’t sufficiently protect your belongings) but being over-insured (having more coverage than you need) can drain your wallet unnecessarily.

One way to avoid being over-insured is to review your policy in detail every year when it’s up for renewal. Be on the lookout for floaters, which is added insurance for items like jewelry and artwork that aren’t covered in your standard policy. If you’ve gotten rid of the items or their value has decreased significantly, you may be able to lower your coverage and save.

Tip 7: Review your credit report annually.

Here’s one more reason to pay your bills on time and review your credit report at least once per year. Because they believe a poor credit history correlates to an increased insurance risk, a number of insurance companies will run your credit report before they give you a quote. Of course, the worse your credit, the higher your rate may be. The good news is, a pristine credit report could help you get a competitive premium.

There’s no need to pay more than you have to for your homeowners insurance. As you can see, following a few easy tips can save you money without sacrificing coverage.

About Elli Bishop and SafeWise

Elli is the head of outreach at SafeWise.  SafeWise provides you with hundreds of unbiased reviews on a variety of America’s top security providers so that you can find a system that fits your family and budget.  Refer to SafeWise’s frequently ask questions about home security for just about every question you have related to security systems, home break-ins, security equipment, and security system features.

Note: This is a guest post; the views and opinions expressed are those of the author and do not necessarily reflect the opinion or position of Redfin.

If you are represented by an agent, this is not a solicitation of your business. This article is for informational purposes only, and is not a substitute for professional advice from a medical provider, licensed attorney, financial advisor, or tax professional. Consumers should independently verify any agency or service mentioned will meet their needs. Learn more about our Editorial Guidelines here.
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Elli Bishop

Elli is the head of outreach at SafeWise. SafeWise is a community-focused safety organization committed to increasing home and community safety through education, awareness, and preparedness. Interested in finding a security provider that offers flood prevention solutions? Try the system finder at SafeWise.com!

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