If you’re a homeowner then you will need to splurge on this type of insurance to make sure you and your home are covered. But why should you pay a fixed sum that costs more than it truly needs to?

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The price of your homeowner’s insurance may vary by hundreds of dollars depending on who you choose to take out a policy with, and the size of your home. Thankfully, there are ways of guaranteeing the level of cover you desire at a price that is comfortable for you.

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Here are some top tips to save some money on homeowners insurance.

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1. Shop Around

Like any other type of insurance, you should dedicate some time to shopping around for the best homeowners insurance policy. This is the best way to guarantee that you are paying the most appropriate rate according to your circumstances. 

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Quality homeowners insurance may set you back a bit of money but in the grand scheme of things, the amount of cover you get is more than worth it! The policy prices will vary depending on the provider that you go with. 

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Take the time to shop around with online-only companies and traditional insurance firms, and compare the same type of insurance and the amount of coverage that you have. By doing this, you are more likely to save money on a full-coverage plan tailored to your needs.

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You will also want to consider a deductible for homeowners insurance when shopping around. The higher your deductible is, the less you will pay for your insurance premium.

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2. Play Things Safe

Many insurance companies will reduce your premiums if you are actively taking the steps to reduce your overall risk at home. This may include deadbolt locks, installing an alarm system, or having another system set in place.

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Depending on the insurance provider you go with you may even have a discount for having a fire alarm or a smoke detector installed. If you have an older home, ensuring the heating, plumbing, and electrical systems are up to date could also help to save you some money.

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Before you make these types of changes or upgrades to your home you should take a look around to see the types of discounts that insurance companies offer.

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3. Improve Your Credit

Wherever you are in the world, an insurance company will check your credit before they agree to or issue a homeowners insurance policy. If you’ve got poor credit you don’t need to worry! There are companies out there that will offer you coverage but your premium may be a little higher.

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In this instance, your insurance company might use a credit-based insurance score to assess your total risk of filing a claim. This score is based on many of the same factors as a typical credit score including your credit utilization, your payment history, and any defaults on your credit report.

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You cannot view this score as it is for your insurance company’s eyes only, but you can check your general credit score to identify areas for improvement. You might be able to do this by avoiding new credit applications, making payments in dye time, and paying off debts. 

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4. Modify Your Coverage

Homeowner’s insurance includes liability insurance, structure insurance, coverage for additional living expenses, and personal property insurance. No two companies will offer the same level of coverage for the same price but you can tailor your exact needs to find a company that can offer what you want at a reasonable cost.

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The tailored or modified insurance premium will always be a much better fit for you and your circumstances than a generic policy. After all, you wouldn’t want to wear an ill-fitting suit or dress, so why are homeowners insurance plans any different?

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Remember that homeowners insurance coverage that pays out more if a claim is made will generally have much higher premiums.

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5. Bundle Insurance Policies

Depending on the company you opt for, you may be able to secure a discount with your insurance if you purchase more than one policy through the same company. This is typically referred to as “bundling” and may mean garnering significant savings. You also have the convenience of all of your insurance plans being located in a single place!

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If you’re seeking a provider for homeowners insurance then you may want to look at the companies you have already taken an auto insurance policy out with before shopping around. They might be able or willing to reduce the price of your homeowner’s insurance as a reward for your loyalty.

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To save the most money possible, make sure that any combined insurance premiums from a single company work out to be lower than purchasing separate cover from two or more different companies.

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Summary

From bundling policies to improving your credit score, these are a few of the simple yet effective steps you can take to save money on your homeowner’s insurance without stressing yourself out. If you do your research and compare prices between companies, you should have little to no trouble saving some money during this process.

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