Home Savings

How to save money on homeowners insurance

The average cost of homeowners insurance is $1,680 per year or about $140 per month. While the price tag can vary by where you live and by the size of your house, experts expect insurance rates to increase. That’s thanks to supply chain issues and the increasing rate of natural disasters. Here is what you need to know about keeping your homeowner’s insurance costs low while still maintaining the right amount of coverage.

Raise Your Deductible

One way to decrease your monthly insurance payment is to increase your deductible — the amount you pay out of pocket when you file a claim. You should only do this if you feel comfortable paying a higher amount should something happen.

Ask For Discounts

Many insurance companies offer discounts, you just need to ask about them. You can sometimes save some cash by bundling different types of insurance together with your homeowner’s policy.

Boost Your Score

Most states allow insurance companies to set their rates, in part, according to consumers’ credit scores. If you live anywhere but California, Maryland, and Massachusetts, you can save money on your policy by having the highest credit score possible. In one recent study, a person with poor credit paid about 76 percent more for homeowners insurance than a person with good credit.

Shop Around

You don’t have to stick with your homeowners insurance. As MarketWatch suggests, if the rates are too high, shop around to find a better policy for your budget. You can use an insurance policy comparison site or an independent agent.

Chris O'Shea

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