There isn’t an objective answer to give when determining the cheapest homeowners insurance, since so much depends on factors that vary from person to person. However there are several definitive ways to get cheaper homeowners insurance than what you’re paying now. However, different companies and different policies will vary in the scale of the benefit, so you’ll want to make sure to compare homeowners insurance carriers to see which gives you the maximum results from the following tips.
1. Take Precautions
There’s an obvious personal incentive for taking precautions and protecting your home, but many insurance companies will reward you for it as well. For example, you may qualify for a discount after installing a stronger roof, storm shutters, or any other weather-resistant renovation. Usually, the area you live in will play a big role in what kinds of precautions you should take. An alarm system will likely provide big discounts for homeowners in areas with high crime rates, while fire-resistant siding would be rewarded for homeowners in dry, fire-prone areas.
2. Raise Your Deductible
When you raise your insurance deductible, you’ll immediately see your monthly bills go down. But this reduction comes with the risk of having to pay more out of pocket if something happened to your home and you needed to file a claim. Although it may be a risk, the odds are in the homeowner’s favor. Of course, no one can predict major home damage or expensive repairs, but as long as you keep up with maintenance and precaution, the odds of this happening are safe enough for even the most conservative spender.
3. Watch Your Credit Score
At the end of the day, insurance companies need to make sure that they’re making wise decisions about the risk level of their clients. So if you’ve filed for bankruptcy a few times, you can’t exactly expect to just be handed a cheap insurance plans. Although your finances all seem very separate from one another, they all come together in that one simple score. Insurance agents are required to inform you of rate changes as a result of credit information, so make sure that the information they’re using is totally accurate by ordering a free credit report at least once a year. In the mean time, keep your credit score up by paying bills on time and limiting spending on credit cards and loans.
In addition to these directly-related actions, insurance companies usually have their own "miscellaneous discounts" for customers that aren’t obvious. For example, some have senior discounts, good student discounts, and bundling discounts for qualifying insurers. Make a list of your own strengths and priorities, and use a live comparative quote to see which company has the cheapest homeowners insurance for you.