Five Cool Tricks to Lower your Home-Owners Insurance Rate

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Five Cool Tricks to Lower your Home-Owners Insurance RateHomeowners that have insurance coming up for renewal have a few ways to lower their costs. This can be done by following a few tips and tricks not known to all homeowners. If the premium has increased for your homeowners insurance, then a few changes to your policy are needed. This can be done if you review all your options.


The Deductible


This is a cool trick that can be used to lower the cost of your yearly premium. Many people may not be knowledge about how a deductible applies to their policy. The deductible is subtracted from the payout of a claim by your insurance company. This is less that the insurance company will need to pay out and is the reason it lowers the cost of a policy. If you have a $500 deductible, then increasing it up to $1000 or more will substantially lower your premium.


The Combination


A significant discount is provided by many insurance companies if they offer both homeowners and an automobile insurance policy. Insurance companies that sell both of these policies will offer the policy owner a 10 percent to 20 percent discount off of both policies. This is an easy way to lower your insurance costs.


The Alarm


This is a category for your homeowners insurance that applies to security. Insurance companies allow a discount for various security features. Common security features include a deadbolt lock, smoke alarm, and having a fire extinguisher. However, an additional discount may be available by improving security in your home. One way to do this is to use surveillance systems combined with a burglar alarm.


Credit History


Homeowners may not be aware that their credit score is used as a rate factor for their policy. The credit score can act as a discount or as a penalty based on the range of their score. If you review the report of your credit history once each year, then you can take steps to remove incorrect information. When your credit score increases, then your premium for an insurance renewal will decrease.


Customer Term


Insurance companies are actively advertising switching companies to get a better rate. However, if you stay with your current insurance company, then a long-term discount may apply. The discount can be a simple way to lower the cost of your homeowners insurance by up to 10 percent. You typically need to have a policy in force for at least three years for this discount to apply.


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