Owning a home comes with many rewards, but the cost of homeowner's insurance can be a significant financial burden.
We understand the pressure high premiums place on hardworking homeowners like you. At Horan, we’ve been helping homeowners across the region cut costs since 2009.
There are several effective strategies you can employ to lower your premium and keep your hard-earned money in your pocket. Let’s explore 6 proven methods to unlock significant savings on your homeowners premium without sacrificing comprehensive coverage.
1. Bundle Your Home and Auto Policies for Optimal Savings
Combining your home and car insurance with the same company often unlocks substantial discounts, sometimes reaching up to 40 percent. However, loyalty doesn’t always guarantee the best deal. Shop around and compare quotes from various carriers to ensure you’re receiving the most competitive rate.
2. Bundle Your Home and Umbrella Policies to Save on Premiums
One of the best ways to lower your insurance costs is to bundle a homeowners policy with an umbrella policy to get extra liability protection and save money on both.
An umbrella policy is a type of insurance that covers you for damages that exceed the limits of your other policies, such as auto, home, or boat insurance. It also covers you for some situations that are not included in your standard policies, such as being sued for libel or slander. Learn more about this critical coverage.
Why Bundling Works
Insurance companies want to retain customers and increase their market share, so they offer incentives for buying multiple policies from them. Bundling can also simplify your billing and claims process, as you only have to deal with one company and one agent.
What to Watch Out For with Policy Bundling
Bundling is not always the best option for everyone. Sometimes, you may find cheaper rates by buying separate policies from different companies, especially if you have a high-risk profile or need specialized coverage. You should also review your policies periodically and compare them with other offers in the market, as bundling discounts may change over time.
Additionally, you should be aware of the potential drawbacks of bundling, such as losing your discounts if you cancel one policy, having less flexibility to customize your coverage, or facing higher premiums if you file a claim on one policy.
3. Enhance Your Home’s Security for More Savings
Home security systems qualify for another discount. If you have a monitored system from ADT, Brinks, or a similar company, you may save 3 to 5 percent. Not all companies offer this, but some do.
Don’t get a security system just for the savings. The discount likely won’t offset the monthly fees. But if you already have a system, take advantage of available discounts.
Why Security Systems Work
Home security systems are designed to protect your home, your valuables and your family from intruders, burglars, vandals, and other threats. They can also alert you and the authorities in case of fire, smoke, carbon monoxide, or other emergencies.
By installing a security system, you can reduce the risk of property damage, theft, or injury, and increase your sense of safety and comfort. These are benefits that go beyond the 3 to 5 percent potential savings.
4. Newer Homes Reap Rewards
One of the factors that can affect your home insurance premium is the age of your home. Newer homes are generally less prone to damage and have more updated features, which can lower the risk of claims. That’s why many insurance companies offer discounts for new homes, but only those built in the last 7 years.
The discounts decrease with each year the home ages, as the home becomes more susceptible to wear and tear. For example, if the discount on a new home in Lysander started at 8 percent, it would be 7 percent the next year, and 6 percent the next, and so on.
This means that you can save more on your home insurance if you buy a newer home or keep your existing home well-maintained.
5. Save on Home Insurance with a Renovation Discount
If you’ve recently renovated your home, you may be eligible for a renovation discount on your home insurance. This is different from a new home discount (discussed above), which only applies to homes built in the last 7 years.
A renovation discount is for homes that have updated the following within the last 3 years:
These updates can reduce the risk of damage and claims, and therefore lower your premium.
Not all insurance companies offer this discount, so you should check with your carrier or agent before you buy or renew your policy. A renovation discount ranges from one carrier to the next, but can be as much as 10% off your premium. This can add up to significant savings over time.
The renovation discount is especially beneficial if you have bought a low-cost fixer-upper and made the necessary improvements.
6. Leak Detection Systems Can Yield Small Discounts
Leak detection systems are gaining popularity, and some forward-thinking insurers offer discounts for homes equipped with them. While the savings may be modest (around 3 percent), it’s another step toward a leaner insurance bill.
Additionally, these systems provide valuable security and composure by alerting you to potential water damage before it becomes a major issue.
Why Leak Detection Systems Matter to Insurers
Water leaks can be a costly and frustrating problem for both homeowners and insurance companies. A water damage claim can be one of the most expensive ones to deal with.
A leak detection system can help avoid major damage by alerting you to leaks as soon as they happen. This way, you can fix the problem quickly and reduce the repair costs. This also means that the insurance company will have to pay less for the claim.
Insurers also like it when homeowners take preventive measures. A leak detection system demonstrates that you’re taking care of your property and preventing future damage. This can be done even from a distance, and it shows the insurance company that you’re a low-risk customer.
Save Money and Secure Your Home with Our 6 Effective Insurance Hacks
We’ve covered 6 proven strategies to help lower your homeowners insurance costs. Small steps like bundling policies, adding protections, or renovating your home can lead to hundreds in annual savings.
By implementing these strategic approaches, you can effectively reduce your home insurance costs and free up valuable financial resources. Every dollar saved is a dollar earned, and with these tips as your guide, you can navigate the world of home insurance with confidence and achieve significant savings.
Remember, comparing quotes from different companies, even when bundling policies, is essential for ensuring you receive the most competitive rate. Additionally, our in-depth articles on comparing car and home insurance quotes can provide valuable guidance as you navigate the insurance landscape.
Imagine keeping an extra $500 or more each year to spend as you choose. That’s money that would have otherwise gone to premiums. Following this guidance positions you to realize these real rewards.
But overlooking this advice could mean trapping precious funds in overpriced policies. We don’t want you to leave savings on the table. You’ve worked too hard for your home. Costly premiums shouldn’t hijack the security and composure homeownership can bring.
The home insurance landscape is complex. But with insights from this article, and a conversation with our knowledgeable agents, you can cut through the confusion.
Click the Get a Quote button below so we can craft a customized insurance strategy that allows you to safeguard the home you love while unlocking substantial savings at the same time.
Daniel is an accomplished content creator. He has been working in publishing for almost two decades. Horan Companies hired Daniel as its content manager in November 2022. The agency entrusted its messaging to him. Since then, Daniel has written insurance articles, service and pillar pages, and more. All in an effort to educate CNY readers. He's helping them understand the world of insurance so they can make informed decisions.