7 Easy ways to lower your homeowners insurance premium

Homeowners insurance is a crucial expense for protecting your biggest asset, but that doesn't mean you should overpay. Many homeowners aren't aware of the simple, actionable steps they can take to reduce their annual premium. Here are seven easy ways to put money back in your pocket without sacrificing coverage.

1. Bundle your policies

This is one of the easiest and most effective ways to save. Most insurance companies offer a significant multi-policy discount—often between 10% and 20%—if you purchase your home and auto insurance from them.

2. Increase your deductible

As we've discussed before, a higher deductible leads to a lower premium. Increasing your deductible from $500 to $1,000 can save you as much as 25% on your policy. Just make sure you can comfortably afford the higher amount out-of-pocket.

3. Improve home security and safety

Insurers love a well-protected home. You can earn discounts by installing safety features like:

• Monitored security systems (burglar and fire alarms)
• Deadbolt locks
• Smoke detectors
• Fire extinguishers

4. Maintain a good credit score

In many states, your credit history is a factor in determining your insurance rates. Insurers have found that individuals with better credit tend to file fewer claims. Regularly paying your bills on time and keeping your credit utilization low can lead to better rates.

"Being proactive about your home's safety and your financial health is one of the best long-term strategies for keeping insurance costs down."

5. Review your coverage annually

Your needs change over time. Don't just "set it and forget it." Review your policy annually to ensure you're not paying for coverage you no longer need. For instance, if you sold expensive jewelry that was specifically listed on your policy, you can remove that rider.

6. Ask about other discounts

You might be surprised at the range of available discounts. Ask your provider if they offer savings for things like being a non-smoker, being retired, or for having updated plumbing or electrical systems.

7. Shop around

Loyalty doesn't always pay. The insurance market is competitive, and rates can vary significantly between companies. It's wise to compare quotes from multiple insurers every few years. That's where Alex AI shines—we do the shopping for you, ensuring you always have the best rate for your needs.