How to Find Affordable Insurance Without Sacrificing Coverage

The land under your home isn’t at risk from theft, windstorm or fire, so it doesn’t need to be covered in a homeowners policy. If you include it, however, you’ll pay a higher premium than you need to.

Another thing to consider is the cost of supplemental coverage. This includes guaranteed replacement cost, which pays to rebuild your home even if it costs more than your policy’s limit. This is typically a good idea if you live in an area where construction costs have risen, but it is also often more expensive than other policy options.

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In addition, some companies offer discounts for security features such as smoke detectors, burglar and fire alarm systems or dead-bolt locks. Consider getting these installed before you buy a house to potentially save on your homeowners insurance.

4. Reduce or Cancel Your Floater

Your insurance company may offer a floater to cover the difference between your home and auto coverage limits. But it is typically expensive, and you may be able to save money by canceling or reducing the amount of coverage you have. For example, if you have $200,000 in total coverage and you have a $250 deductible on your homeowners policy, you can expect to pay a premium of $116 a year. If you have a $500 deductible and the same coverage, you would only pay $72.

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Insurers will increase premiums for a variety of reasons. They may be anticipating future catastrophes, such as more frequent severe weather, or they may be absorbing costs from other factors, such as higher medical claims. As a result, it is important to shop around and compare prices. Using an online comparison service or mobile apps can help you quickly find quotes from multiple insurers.

Bundling policies can also save you money, but it’s important to consider the full cost of a bundled policy. A low home and auto premium may be offset by higher charges for other services, such as roadside assistance or digital tools. Also, remember that your “bundle” may actually be two separate policies from different companies.

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Another way to save is by improving your credit score, which can affect your auto and home insurance rates. You can do this by paying down debt, addressing errors in your credit report and avoiding late payments. You can also sign up for a mileage-based auto insurance policy, which reduces your rate if you drive fewer miles than average. In addition, make sure to talk with your agent annually about life changes that can affect your policy. For example, if your children have moved out of the house and stopped driving your car, you may be able to decrease your car insurance premium by removing them from the policy.

5. Keep Your Home Safe

Keeping your home safe is an essential part of owning it and enjoying the American dream. That’s why we’ve put together some relatively inexpensive tools, tricks and changes you can make to help keep your loved ones and possessions safe — while also saving big on home insurance.

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