If you’re like most homeowners, you’re probably looking for smart ways to cut costs without sacrificing essential protection. One area you might be overlooking is your home insurance premium. What if you could keep the same great coverage and still save money every year? Fortunately, lowering your home insurance premium is not only possible, but it’s often easier than you think. Here’s how to start saving today.
Bundle Your Policies
One of the quickest ways to reduce your home insurance premium is by bundling. If you have auto insurance with one provider and home insurance with another, you're likely missing out on multi-policy discounts. By combining both under one company, you can often get a 15% to 25% discount on your total premiums.
Raise Your Deductible
The deductible is the amount you pay out of pocket when making a claim. If you're currently carrying a low deductible like $500, consider increasing it to $1,000 or more. The higher your home policy deductible, the lower your monthly or annual premiums. You need to be sure you can afford the deductible in case of a claim, but if you’re financially prepared, it’s a smart move.
Improve Your Home’s Security
Insurance providers calculate risk based on how vulnerable your home is to theft or damage. That means installing security systems, deadbolt locks, smoke detectors, or even water leak sensors can help you qualify for home insurance safety discounts. Some insurers offer up to 10% off for a monitored alarm system. It not only gives you peace of mind but also lowers your premium.
Maintain a Good Credit Score
Did you know your credit score can affect your home insurance rate? Insurers use credit-based insurance scores to help determine how likely you are to file a claim. If your credit is good, you’re considered lower risk, and you get better rates. If you’ve been working on improving your credit, now’s the time to ask your insurer to reevaluate your premium.
Don’t Over-Insure
You want full protection, but there’s a difference between insuring your home’s replacement cost and its market value. For example, if your house could be rebuilt for $300,000 but the market value is $450,000 due to location, you only need to insure the rebuild cost. You don’t want to pay extra for land value, which isn’t at risk of fire or theft.
Review and Update Your Policy Annually
A lot can change in a year. You might have installed a new roof, upgraded your plumbing, or replaced aging electrical systems, all of which reduce your home’s risk profile. Be proactive by reaching out to your insurer every 12 months and ask them to review your policy. You may qualify for a better rate based on updates or improved safety features.
Shop Around and Compare Quotes
Loyalty doesn’t always pay. Insurance companies often raise premiums over time, assuming you won’t leave. Don’t settle. Get quotes from multiple providers to compare. You may find a better rate elsewhere for the same, or better coverage. If you're in Ontario, checking with Guelph Insurance providers is a great place to start. They often offer competitive rates tailored to your region and property type.
Endnote
Lowering your home insurance premium doesn’t mean cutting corners, it means being smart about how you manage risk and who you choose to work with. From bundling policies to improving your credit score, you have control over how much you pay. Start today by reviewing your current coverage, checking for eligible discounts, and comparing rates.
