We all know how expensive homeowners insurance can get. According to Policygenius, the average premium runs at about $1,200 a month, although that varies by state and home.
Fortunately, there are things you can do—beyond just being a good shopper—that will help you save money on homeowners insurance. Here are a few places to start.
1. Don’t count the land. If a fire or tornado levels your house, you’ll have to rebuild everything. One thing that you’ll still have, however, is your land. So the Insurance Information Institute recommends not including its value when you decide how much home insurance to buy. Otherwise, your premium may be higher than it needs to be.
2. Bundling. In this instance, doing more will save more. Many insurers will offer package deals for auto and home insurance, helping you to save on how much you’re paying for home insurance, according to Policygenius. Since you need auto insurance anyways, this seems like a no-brainer.
3. Disaster proofing your home. Making your home more resistant to disasters is likely to lower the chances that you’ll need a major insurance payout after a storm or other catastrophic event. The Insurance Information Institute recommends adding storm shutters, strengthening your roof, and upgrading heating, plumbing, and electrical systems to minimize the chances of a fire or water leaks.
4. Your credit score. Having a good credit score can be key to landing good homeowners insurance premium rates. If you’re credit isn’t in a good place, make a point of staying on top of bill deadlines and take care of any major credit card debt, according to NerdWallet.
5. Home Security System. This can also protect you from higher premiums. A security system or burglar alarm could help you shave off as much as 2 to 3 percent on your premiums, according to Consumer Reports. In some states, the amount could be even higher.
Saving money on your homeowners insurance premiums doesn’t just benefit your financially. Implementing the above measures will make your home safer and put your finances on more solid footing.