How to Get the Best Homeowner’s Insurance at the Best Price
The price you pay for homeowner’s insurance can vary by hundreds of dollars, depending on the insurance company you buy your policy from. One tip is to ask your insurance agent or company representative about discounts available to you, but there are many others, some of which are listed below.
Shop Around
Compare quotes from different insurance companies to find the best deal.
Raise Your Deductibles
Increasing your deductible can lower your premium. Choose the highest deductible you can afford.
Bundle Policies
Buy home and auto policies from the same company to get a discount.
Check a Home’s Insurance Cost Prior to Purchase
Before purchasing a new home, check the insurance cost, as it may vary based on the home’s age, location, and construction type.
Don’t Insure Land
Only insure the house itself, not the land, as land is not at risk from theft or disasters.
Increase Home Security
Installing security features like smoke detectors, burglar alarms, or dead-bolt locks can earn you discounts.
Stop Smoking
Some insurers offer lower premiums if all residents in a house are non-smokers.
Review Your Policy Annually
Review your homeowner’s insurance policy annually to ensure it still meets your needs.
How Much Homeowner’s Insurance Should I Buy?
Insure for 100 Percent of Rebuilding Costs
The amount of insurance you buy should be based on the cost of rebuilding, not the market value of your home. Rebuilding costs may differ from the purchase price or current market value.
Replacement Cost Policy
Most policies cover replacement cost for structural damage. A replacement cost policy will pay to repair or replace damaged property with materials of similar kind and quality, without deducting for depreciation.
Flood Insurance
If you live in an area prone to flooding, inquire about flood insurance from your agent or the Federal Insurance Administration.
Keep Your Agent Informed
Ensure your agent is aware of any home improvements or additions to adjust your policy coverage accordingly.
Check Policy Limits
Look at your policy to see what the maximum amount is that your insurance company would pay if your house was damaged and had to be rebuilt.
Contents Insurance
Make a detailed inventory of all personal possessions, including furniture, appliances, electronics, and jewelry, to ensure they are adequately covered.
Special Limits of Liability
Check your policy for special limits on items like jewelry, artwork, and computers. Consider additional coverage for these items if necessary.
Find Out About Flood Insurance
If your home is in an area prone to flooding, contact your insurance agent or the Federal Insurance Administration at (800) 638-6620 and ask about the National Flood Insurance Program.
How Should I Shop for a Home Insurer?
Do some preliminary research by listing potential insurers. Ask friends for recommendations, search online, check consumer guides, or contact your state insurance department. Talk to insurers about ways to lower costs and get quotes from at least three companies. Consider both price and service quality when making your decision.
How Much of a Homeowner’s Deductible Should I Have?
Homeowner’s policy deductibles typically start at $250. Increasing your deductible can save money on premiums.
Should I Buy Home and Auto Policies from the Same Company?
Some insurers offer discounts of 5 to 15 percent if you purchase both home and auto insurance policies from them.
Should Insurance Costs Be a Factor in the Home Purchase Decision?
Consider the insurance cost of a new home before purchasing. Newer homes, brick houses, and homes in certain regions may qualify for lower premiums. Homes near fire stations or hydrants may also cost less to insure.
Does Home Security Reduce Insurance Cost?
Home security systems like smoke detectors, burglar alarms, and sprinkler systems can lower insurance premiums. Check with your insurer for specific discounts available for these installations.
Do Home Insurers Offer Discounts for Non-Smokers?
Some insurers reduce premiums for non-smokers. Ask your insurer if this discount applies to you.
How Often Should I Review My Homeowner’s Policy?
Review your homeowner’s insurance policy at least once a year to ensure it covers any major purchases or home additions. Adjust coverage as necessary to avoid over-insuring items that have depreciated in value.
Should I Buy Private or Government-Sponsored Storm Insurance?
If you live in a high-risk area for coastal storms or other natural disasters, consider private insurance options, as they may offer lower rates than government plans. Consult with your insurance agent for more details.