5 Tips to Reduce Your Home Insurance Rate



In today’s hectic lives, a home should be a safe space to return to at the end of the day to relax. However, a house is susceptible to unexpected events such as thefts, accidents, or natural disasters. Fortunately, you can get home insurance which is essential for homeowners, providing you financial protection for these unexpected events.

However, a house insurance policy’s current price is $1,428 per year, which can strain your budget considerably. Here are four tips to decrease your home insurance policy premiums to protect your wallet and home without compromising coverage.

1. Build Your Credit Score

Your credit score is an essential part of calculating the price of your home insurance.  A credit-based insurance score is used in most states to determine the rate. You may need to pay higher rates for your insurance If the insurer thinks your credit score is too low.

Your FICO score determines your creditworthiness and is calculated by the data collected by your credit report: your payment history, amounts owed, new credit accounts, length of credit card history, and types of credit used. A FICO score under 630 is generally considered inadequate.

Check your credit score before applying and ensure everything is up-to-date and error-free. If you plan on getting home insurance, start working on getting a good credit score, like paying loans and reducing your credit card balance.

2. Increase Your Deductible

A great way to decrease your premium is to raise your insurance deductible. A deductible is the money you must pay before the insurance policy becomes effective. The higher your deductible is, the cheaper your insurance rates will be.

Since you must pay this money at some point, consider paying upfront to save costs. But make sure to make your deductible as high as you can afford and not higher than your house budget so you have enough money left in case you need to cover a bigger expense to claim in the future.

3.  Increase Your House Security

A protected home can help you get a discount on your home insurance policy. Consider installing a comprehensive home security system that protects you from all potential liabilities like theft, fire, and vandalism. Here are a few core components of such a system:

● – Smoke detector

● – Deadbolt locks

● – Burglar alarm

● – Sprinkler system

● – Fire alarm

Installing these devices will make your house safe for you and your family and save you money.

4. Don’t File Small Claims

Sometimes, you may want to file a claim for minor incidents. But sometimes, repeatedly filing small claims presents you as a risk to your insurers, and they will raise your premiums. You can even get your policy canceled by filing multiple claims. Research properly and check if filing the claim is worth it, as it can cost you more in the long run.

5. Know Factors that Affect Insurance Premiums

Costs can add up on your insurance if you or someone in your house is a smoker since it increases the chances of a house fire. Fun features like a pool, trampolines, and hot tub can increase your home insurance costs.  These are termed attractive nuisances by insurers because they are potential safety hazards. Getting rid of these items can help you save money on your home insurance.

The chances of filling a claim more than once at a time are low, even more, if you have more than one insurance policy under the same company. If you find a company with suitable other insurance like life or car, including your home insurance, you can get your bundle discount. You can also get a deal if you recently bought your house.


Home insurance can provide you the financial security for unexpected events. Build your credit score, as it usually determines your insurance policy rate. Don’t file small claims to prevent your premium price from increasing. Research properly and check if your insurer offers other discounts, such as bundle discounts. These tips can help you protect your house and family while saving money.


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