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Tips for Lowering Home Insurance Premium

Home insurance protects your house, belongings and liability against unexpected losses. While this coverage is important, your premiums also often include costs you can control or reduce based on your needs. 
 
Here are a number of ways to save on your insurance premium:
1. Check your home value
"Sometimes, the value of your home plus the inflation guard outpaces actual inflation — and your home can be overvalued," says Ashleigh Trent, personal lines director and co-founder of Tower Street Insurance. Trent encourages homeowners to check their home replacement cost every five to seven years to ensure they're not overpaying.
 
2. Customize your other structures coverage limit
Other structures coverage protects everything on your property except your main house, such as sheds, fences and detached garages.
 
"If you live on a small lot or have a large home with minimal other structures, you could look to decrease that limit," advises Trent. 
 
However, Greg Martin, president of Think Safe Insurance, notes that while some carriers allow adjustments to match your needs, others have fixed percentages.
 
3. Ask for discounts
This is one of the simplest ways to save money on your home insurance. Many insurers offer discounts that you might not know about, such as deals for retirees, non-smokers or new homebuyers. You might also qualify for reduced rates if you pay your premium annually instead of monthly and set up automatic payments.
 
4. Invest in loss prevention measures
"The best claim is one that never happens, so take precautions to limit your loss exposure," Trent says. Some insurance discounts come from built-in features such as hail-resistant shingles or interior sprinkler systems.
 
But you can still qualify for savings on an existing home. Installing burglar alarms, fire monitoring systems and automatic water shut-off devices are among the most cost-effective upgrades. 
 
"These lower the chances of filing claims, which insurers appreciate [and benefit] you with lower rates," says Brent Thurman, owner of Keystone Insurance.
 
5. Protect your claims history
Insurance companies focus more on how often you file claims than how much they pay out. 
 
"Most carriers will not offer a quote to people with three or more claims within five years," warns Trent. 
 
She suggests handling small losses yourself to keep them off record, as filing minor claims can cost more in premium increases than paying out of pocket.
 
6. Increase your deductible
A higher deductible typically means lower premiums — with $1,000 to $2,500 being most cost-effective, according to Martin. Balance is crucial when picking a deductible, however. 
 
"You want to choose an amount that saves you money upfront but won't be too expensive if disaster strikes and you need to make a claim," Thurman points out.
 
7. Bundle policies
While most people know about bundling home and auto insurance, "some carriers give additional discounts for having a valuable articles policy and an umbrella (excess liability) policy," explains Trent. 
 
Ask your agent about all available bundling options to maximize your savings.
 
8. Contact an independent agent
Instead of calling insurance companies yourself, let an independent agent do the work. 
 
"[These] agents represent your interests in the insurance market, and some carriers only offer rates through independent agents [anyway]," Trent says. They can access exclusive markets, compare dozens of policies at once and find discounts you might miss.
 
9. Improve your credit rating
"Many carriers closely tie their rates to a person's IBS (Insurance Bureau Score) or financial credit rating," Trent explains. 
 
Improving your credit can help lower your premium. So focus on paying bills on time, reducing credit card balances and checking your credit report for errors to boost your score.
 
10. Be mindful of liability risks
Swimming pools, trampolines and playground equipment are fun for families but increase insurance premiums due to their accident risk. Insurance companies consider these "attractive nuisances" because they may draw people to your home and lead to injury claims. Consider this added cost when deciding whether to install such features on your property.
 
The bottom line
Aside from these tips, one of the most effective strategies is simply shopping around. Insurance companies offer varying rates and discounts for the same coverage. Getting insurance quotes from at least three carriers could save you hundreds on your premium while maintaining ample protection.
 
And every year, take a moment to review your insurance plan. "Make sure you're not paying for things you don't need or that you're not underinsured because your property's value has increased," Thurman advises. Let your agent know about any home improvements or lifestyle changes that could qualify you for new savings.
 
https://www.cbsnews.com/news/tips-for-lowering-your-home-insurance-premium/
 
MoneyWatch, Sharon Wu, February 13, 2025

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