Homeowner's insurance is necessary but often expensive. You actually have some control over your homeowner's insurance premium rate, though. There are steps you can take to lower your insurance premium.
#1 Raise Your Deductible
One of the easiest ways to lower your premium is raising your deductible. A lower deductible makes your insurance cost more, whereas a higher deductible makes your insurance cost less. To save money, you should choose the highest premium that you can afford.
For example, if you had something happen to your home tomorrow, could you pay $250? $500? $1,000? Set your deductible at a rate that you could pay tomorrow without compromising your ability to pay your other bills. Setting your deductible higher will mean you need to have a constant savings that equals that amount. However, you should be able to save significantly on your monthly insurance premium payments.
#2 Reduce Your Risk
Keep in mind that there are certain modifications that you can make to your home that will increase the cost of your insurance. For example, adding a trampoline or a pool to your home can increase your insurance premium. Talk to your insurance provider to learn what type of modifications and equipment will increase your insurance premium. This will allow you to weigh the risk verses benefit of having these items on your property.
#3 Work on Your Credit Score
Your credit score can actually have a direct impact on your homeowner's insurance policy rate. The better your credit, the better the rate you will be able to secure. Paying your bills and being responsible does pay off; smart financial decisions will help you save money on your insurance premium. Make sure that you are paying your bills on time and keeping your debt profile low to save money on your insurance.
#4 Make Sure You Have the Right Insurance
Finally, make sure that you are paying for the right type of insurance. Make sure that you are not paying for extras that you don't need. For example, if you live in an area with an extremely low risk for earthquakes, evaluate if it makes sense to pay for earthquake insurance. If you are paying for any unnecessary coverage, remove it from your policy and see how much you save.
For more information on ways to lower your homeowner's insurance premium, contact an insurance agency like Family Insurance Centers in your area.