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How to Save on the Best Homeowners Insurance

The best homeowners insurance protects you at a low cost. Use these homeowners insurance quotes tips for comparing companies for homeowners insurance.

How to Save on the Best Homeowners Insurance

If you’re buying or you own a home, congratulations! A home typically becomes the most significant purchase you’ll ever make in life, so it’s definitely worth protecting it for your and your family's comfort.

It’s a good idea to get a quote for homeowners insurance to safeguard your home investment and the belongings inside from issues like natural disasters or a robbery. Many mortgage providers require homeowners insurance as part of the mortgage terms. Homeowners insurance can give you peace of mind, knowing your home and possessions are protected.

Similar to other types of insurance, homeowners insurance is typically a monthly or annual expense. You can potentially lower the costs of your homeowners insurance quotes by using the tips below.

1. Know what’s required

First, know how much homeowners insurance coverage you need. Typically, homeowners insurance includes:

  • Dwelling coverage: This covers damage to the home. You may want to get enough coverage to cover the cost of rebuilding your home, in case your house is damaged by a natural disaster or fire. Keep in mind that the value of your home also includes the land, so you can lower your premium by excluding the land value in how much you estimate for home rebuilding.
  • Other structures: This covers external structures on your property, like tool sheds, detached garages, and fences.
  • Loss-of-use coverage: This provides coverage for alternative accommodations if you’re unable to live in your home while it’s being repaired or rebuilt.
  • Personal property coverage: This covers damaged or stolen things from within your home.

Be careful about underestimating the amount of coverage you need. According to insurer Nationwide, about two out of three homes in the U.S. are underinsured by an average of 22%, with many underinsured up to 60% or more. Be mindful that if you don’t have enough to cover what you’ve lost, that might cause a bigger headache down the road than getting adequate coverage now.

2. Shop around

Most companies for homeowners insurance will provide you with a free quote for homeowners insurance before you decide to commit. Aim to get homeowners insurance quotes from at least three companies so you can compare your offerings.

Not sure where to start? Ask your mortgage company, since they probably have a homeowners insurer to recommend. You can also ask friends and loved ones for recommendations. Or, use a comparison site or insurance agent to get several quotes for comparison at once.

3. Look for membership discounts

You may have access to homeowners insurance discounts via memberships you already belong to. Check for potential discounts through places like:

  • Your employer
  • Your credit card company or credit union
  • Any associations you belong to, like a professional group or trade association

You may also be able to qualify for discounts for other circumstances, such as if you’re a senior citizen. Also, if you have a different type of insurance (auto insurance, for example) with a company that also offers homeowners insurance, you may be able to lower your costs by bundling your insurance offerings. When you get several types of insurance through a single provider, your overall costs on all your insurance types could be lower.

4. Ask about other discounts

Various insurance companies may also offer discounts to homeowners based on the actions they take. For example, you may be able to get a discount if you’re building a home in new construction. Some companies will offer discounts for making energy-efficient upgrades or for improving the home’s safety, such as installing fire extinguishers or smoke detectors. Some insurers may even provide a discount for adding security devices like burglar alarm systems or dead-bolt locks.

Other home upgrades could score you discounts, too. Ask an insurer for ways to save by making your home more disaster-resistant, through improvements like shatterproof windows or roof reinforcement upgrades. 

You could also reduce the risk of water and fire damage by modernizing your electrical, heating, and plumbing systems. You’ll get to save money on insurance long-term, and improve your home in the process.

5. Increase your deductible

Typically, you can lower your insurance premium costs by hiking up your deductible. You can also keep your premium lower by making repairs or fixing issues yourself, instead of filing a claim through your homeowners insurance provider. When you file a claim, your premium may increase.

Make sure you can afford whatever your deductible is. You can save towards emergency home costs by creating an emergency fund. Use how much you’ve saved there to determine your deductible amount and potentially save on premiums.

6. Continue comparing

Your homeowners insurance needs may change every few years, and that means your costs can decrease, too. If you work with an agent, talk with them every few years about potentially better offers that may be available to you. You can recalculate your home expenses and re-compare insurers by getting new homeowners insurance quotes, too. If your credit score increases, that could help you get lower quotes in the future, as well.

If you join a new organization, start a new job, get a new credit card, or make another life change, research if your new circumstances also provide potential savings on your homeowners insurance. If you’re able to create an emergency fund with more savings, you could increase your deductible, too.

It never hurts to ask

With just a few proactive steps, you could potentially save hundreds of dollars a year on your homeowners insurance costs. Keep an eye out for potential discounts and continually compare your options to keep your costs as low as possible.

If you’re currently with a homeowners insurer you like and you find a lower quote with a different company, ask your insurer if they’re willing to match your new quote. Some insurers will offer savings the longer you’re insured with them, too. Your business is valuable, so you could improve your options by talking with your insurance agent.

Love saving on everything, not just insurance? Check your mailer for coupons on groceries and other items that make your house a home.