A recent US survey estimated 67% of people are worried about the cost of living as food and energy prices increase significantly. It is crucial to identify the biggest cost in your life and find practical ways to reduce it. Meanwhile, homeowner insurance could cost you more than you think despite rarely getting better attention. According to a NerdWallet analysis, homeowner insurance costs an average of $1,820 annually. What if you could reduce this cost? Continue reading to learn four surprising ways to lower your premium.
Work towards a higher credit score
A higher credit report score might help you get a sweet deal on your home insurance. For this reason, look for strategies to improve your credit score before applying for a policy or renewing your existing one. Find out if you can make one-time payments, decrease your credit utilization and avoid applying for new credit lines unless necessary. Meanwhile, the time taken to improve a poor credit score may depend on your situation. However, it may take a while, so you may take these steps in advance before your existing policy expires or you purchase the policy.
Skip small claims
Even if the incident is small, submitting an insurance claim with your insurer may be tempting. However, paying for minor bills out of pocket would be best since some insurers offer discounts if you remain claim-free for a set time. But how big of an impact may making a claim have on your rates? Think about it this way: filing a claim for wind damage could increase your yearly insurance rate by nearly 9% on average. If the damage is modest, you may pay more for rate hikes than the insurance for your claim.
Eliminate high-risk items
Some items like swimming pools and trampolines are nice home features. However, kids are fascinated by some of these things, and some insurers may recognize them as unnecessary though attractive. You may be held legally responsible if they get hurt using these home features. While you may eliminate them to cut your premium, some insurers offer discounts for storing items like firearms in a safe. Suppose you own a firearm. In that case, you can consider durable options like Fort Knox safes to keep your home secure and enjoy some discount on your premium.
Accurately estimate your content value
Creating a reliable estimate of your domestic items’ replacement cost can make lowering your home insurance premium easier. You may use a few online calculators to estimate the cost of your home contents. Based on this cost, your insurer may replace the item or pay you a cash settlement up to what you would replace the item yourself. That is why ensuring that you have adequately insured your possessions is critical. Overestimation will result in a higher rate for the same situation at claim time, while underestimation could mean you cannot replace the item at the estimated price.
While lowering your insurance premium can reduce the strain on your finances, avoiding cutting coverages you may need is vital. In addition to the above tips, take the time to critically assess your needs and drop unnecessary policies to lower your monthly premium.
Jessi is the creative mind behind The Coffee Mom, a popular blog that combines parenting advice, travel tips, and a love for all things Disney. As a trusted Disney influencer and passionate storyteller, Jessi’s authentic insights and relatable content resonate with readers worldwide.