Row of victorian homes along a street

Five Tips for Home Insurance Savings

These five home insurance savings tips can help you lower premiums and enjoy better protection for the money you spend:

1. Shop Around

If you've had your policy for a few years, you may have grown complacent. You can bet that insurance companies have not remained stagnant because they have to find customers in a very competitive market. You can probably find a competitive insurance company that will offer you lower premiums in exchange for your business.

Another company might have discount programs that you can benefit from because of things that you already do. Your current insurer may have been the best choice when you first got your policy, but that might not be true today.

2. Check for Discounts and Credits

You might already qualify for homeowners insurance discounts that you haven't taken advantage of yet. For instance, almost all insurers offer discounts for buying both homeowners and auto insurance. Otherwise, they might offer discounts or credits if you install a security system, upgrade your roof, or take other measures that reduce your risk of claims.

Some of these actions can also increase your home's value and make your house safer. Basically, insurers want to reduce the chance of paying claims, and you should also want to decrease the chance of damage. Insurers have statistics about the reasons that they have paid claims, and you can benefit from your insurer's experience.

3. Calculate Rebuilding Costs the Right Way

Be aware of the way that your insurance company calculated your rebuilding costs because their figures might not be accurate. Depending upon where you live, this could increase or decrease rebuilding costs. For instance, any money you paid for your land really shouldn't be included in the cost of rebuilding. On the other hand, the sales price for an older home might not reflect today's rebuilding cost.

Either way, you want to make certain that your policy offers enough protection to rebuild your home, but you don't want to overpay for too much protection. You might look for information about average rebuilding costs in your local area to come up with a good number to base your policy upon.

4. Consider Increasing Your Deductible

The deductible is the amount that you must pay before your coverage will start helping you with repair bills. Naturally, you can increase it to enjoy savings. On the other hand, you will need to find more money from your own pocket if you do have a claim.

You can consider increasing your deductible, but make sure that you won't suffer if you must make a policy claim. An insurer will charge less for a $3,000 deductible than a $500 deductible. Just remember that you will need to come up with that first $3,000 if you do have damages.

5. Factor Homeowners Insurance into Your Next Home Purchase Decision

Are you planning to buy a new home? Remember that your homeowners insurance premiums represent a substantial portion of the fixed cost of owning a home. The value of your new home has some impact on your premiums, however, so does the condition and even the location of the house.

When you compare the price of homes, you can also get free quotes to see how much your coverage will cost. These competitive premiums can also raise red flags about potential risks to the house. In some cases, more expensive homes may be cheaper to cover because they are in better shape, but this won't always be true.

You can learn about the home insurance coverage options that Plymouth Rock offers and read information about finding the lowest rate.

Call 855-993-4470 or find a local agent and if you have any questions about the five homeowners insurance savings tips for you can visit our Contact Us page.