understanding your insurance policy

How to Make Your Home Insurance Premiums Cheaper

11 January 2016 by Tuĝba Van Den Heijkant

What you pay for home insurance every month can vary by quite a bit from what a friend or neighbor might pay. If you do not have a strong credit history or a home that needs repairs, for example, you may end up paying more for your monthly premiums than you would like. High home insurance premiums can really add up and eat into your budget. Making a few changes, however, can lower your home insurance bills. Here is some useful advice on how to make your home insurance premiums cheaper:

Increase Your Credit Score

When it comes to getting affordable home insurance rates, your credit score matters. According to a study conducted by InsuranceQuotes.com, homeowners with bad credit histories end up paying 91 percent more for home insurance than those who have great credit. If you credit score is currently not up to par, you can work to increase it. Never make late payments and try to pay more than the minimum balance on your credit cards every month. Once you raise your score, your insurance company may give you a discount.

Make Your Home More Secure

Another way you can convince your insurance company to lower your home insurance rates is to add security to your home. If you install a security system in your house, burglars will be less likely to rob your home. The alarm that goes off when burglars try to break in will scare a lot of them away. If you think a security system will cost too much money, just think about how much money it will save you in insurance premiums.

Do Not Put Off Necessary Home Repairs

If you live in an older home that requires big repairs, your insurance company may charge you more money. For instance, if the electrical system in your home is old, this can increase the risk of fires. Making the necessary home repairs may set you back a lot of money, but your insurance company will likely charge you less expensive premiums.

Sign Your Dog Up for Obedience Training

If you own an aggressive dog breed, your insurance company may consider you a bigger risk and charge higher premiums. However, that does not mean you have to get rid of your dog. If you sign your pooch up for obedience training and provide proof of his completion, your insurance company may feel better and lower your insurance rates.

Stop Smoking

Quitting smoking will not only benefit your health in numerous ways; it can also lower your home insurance rates. Smoking inside the home can increase the risk of fires, making insurance companies more nervous. If you provide proof to your insurance company that you have stopped smoking, you may get a discount.

Think before Making Small Claims

If you make too many small claims, your insurance company may consider you a higher risk and charge more for your home insurance premiums. It is better to use your home insurance for bigger expenses, such as extreme fire or water damage.

Ask about Other Discounts

When you have meetings with your insurance agent, do not forget to inquire about other discounts you qualify for. For instance, if you are retired, you may get charged lower home insurance premiums. You likely stay at home more and are at a lower risk of burglaries.

Do not let your home insurance premiums break the bank. If you follow these helpful tips, you can reduce your premiums and have more money in your bank account. If you are ever unsure about an increase in your home insurance premiums, you should talk to your insurance agent as soon as possible. You can also read more about homeowners insurance online.

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