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Tips for lowering home insurance rates

June 29, 2015

Paying a monthly home insurance quote can be a stressful experience for a lot of people. In 2015, the average monthly American homeowner's premium is $95.52, according to financial group ValuePenguin. That comes out to more than $1,100 per year. In some states, it can be even higher, which is a heavy burden on families who are trying to save every penny they can.

Paying for home insurance can be costly, but there are ways to make it affordable.

There are methods to lower those costs, however. Finding ways to save on insurance can be valuable for many people who could be spending that money on a lot of other important things. At the same time, home insurance can be necessary in case something goes wrong, and it is important to have in case of emergency.

Follow these steps to lower a monthly insurance quote:

1) Raise the deductible

The deductible is the amount of money you have to pay toward a loss or problem before an insurance company will begin to pay a claim. That means the higher a deductible, the more money you can save every month on a premium, especially if the home is safe and claims are rarely filed. Many insurance companies recommend a deductible of at least $500, the Insurance Information Institute said. Therefore any damage or home repair service that costs less than that will be the homeowner's responsibility to pay for. If it is within your budget, raising the deductible to $1,000 per month will lower the monthly rate as much as 25 percent.

2) Improve security

Insurance companies will be held responsible if something goes wrong at your house, such as a break-in. The companies don't want that to happen, and obviously, neither do you. That is why many insurance plans offer discounts for home security upgrades. Vicki Tuua, a home insurance agent and expert, told Yahoo Finance that she has seen monthly payments drop after residents install a simple home security alarm.

“Insurance companies are encouraging homeowners to install monitored security systems by offering them substantial discounts on homeowner's insurance,” Tuua said. “In fact, most insurance companies are willing to give you a discount of 5 percent or more.”

A home security camera can help prevent burglaries and also lower insurance costs. Installing a home security system can be a way to lower insurance costs.

3) See what discounts are available

There is a chance discounts are available and homeowners just don't know about it. Do not be afraid to regularly call your home insurance agency and ask about deals to lower costs. Some companies offer lower rates to customers of a certain age, or those with accomplished educational backgrounds such as bachelor's or master's degrees. Some employers or professional organizations may also offer discounts, so it is wise to inquire about ways to save.

4) Constantly review your plan

If you have been on the same insurance plan for a while, it is possible you are still paying for things that no longer apply. For example if you claimed a new television at $1,000 five years ago, there is a good chance that it is no longer worth that amount. At the same time, if you make a new purchase on an item that you want cover, let an insurance agent know so that it can be covered. Review what your insurance plan is covering and update the plan to guarantee that every month, you are protecting the actual items that are in your home.

5) Adjust payments

If your budget allows, it, it may be wise to pay an annual payment instead of writing a check for your home insurance rate 12 times a year. Some companies offer discounts for paying all at once. Even if it's just $10 off a month, that comes out to $120 saved, along with the stress of remembering to pay the insurance company every 30 days.