Don’t Forget the House: How to Lower Your Home Insurance Costs

The cost of homeowners insurance is one of those unavoidable expenses that come along with owning a house. How much you’ll pay for insurance depends on many factors, such as your location and the age of your home. It can certainly feel like a hefty expense. However, not only does your mortgage company probably require you to obtain a certain level of homeowners insurance but knowing you’ll be reimbursed if something happens to your most valuable investment can be priceless. 

If you’re having trouble including homeowners insurance costs in your budget, foregoing coverage altogether is not the answer. Fortunately, there are a number of things you can do to make the costs easier on your wallet without offering weaker protection.

Have an Annual Check-in 

Do you understand what your current policy covers? Even though contracts have got easier to digest, the large renewal documents can still be confusing. Begin with the declarations page, which is essentially a summary of your coverage, then take a look at the exclusions page to see what your policy specifically doesn’t cover. You can review with your New Jersey home insurance agent to make sure you are on plan for your unique needs. 

Ask for Available Discounts

Insurers typically offer a variety of discounts to homeowners for a wide variety of reasons. A common discount applies for bundling your home and auto policies with the same insurer. While you’re speaking with your New Jersey home insurance agent, make sure you’re getting all the discounts for which you qualify.

Have you upgraded your roof or windows in the past year, installed smoke detectors and fire extinguishers, or made energy-efficient upgrades? If so you may be eligible for additional money off your premium. 

Keep a Clean Credit Record

Establishing a solid credit history can dramatically cut your insurance costs, as this information is being used to price homeowners insurance policies.  To protect your credit standing, pay your bills on time, don’t obtain more credit than you need, and keep your credit balances as low as possible. 

Raise Your Deductible

Generally, the higher your deductible, the lower your insurance premiums. You can boost your premium by $500 to $1,000 to have the chance to save you as much as 25 percent on your premiums. 

When choosing your premium amount,  it is important to consider the cost of repairs or other issues that would prompt you to file a claim. Avoiding small claims can also help keep your premiums from increasing.

It is typically best to have a deductible that is higher than what you can afford out of pocket. If you have an emergency fund that could withstand the hit, ask your New Jersey home insurance agent to let you know exactly how much your premiums could change if you increase your deductible.   

About Provident Protection Plus

At Provident Protection Plus, we have served the businesses and residents of New Jersey, New York, and Pennsylvania for more than 65 years. We are a wholly-owned subsidiary of Provident Bank, the region’s premier banking institution, and we are prepared to offer you personal, business, employee benefits, and risk management solutions. To learn more about our coverage options, contact our specialists today at (888) 990-0526.