Are there ways to save on my home insurance?

Along with mortgage payments and taxes, home insurance can be a major expense for homeowners. Is this the case for you? Are you looking for ways to reduce your premium and minimize the strain on your finances?

Here are a few tips.

Increase your deductible

The deductible, the amount you pay out of pocket in the event of a claim, directly affects your premium. Depending on your insurance policy, you may be able to lower your monthly payments by opting for a higher deductible.

Review the cost of rebuilding

Many homeowners get sufficient home insurance coverage for a rebuilding cost equal to their home’s purchase price. Nowadays, it’s not uncommon for a home to cost more to purchase than it would to rebuild in the event of a major disaster.

By assessing the realistic cost to rebuild your home and adjusting your policy accordingly, you may be able to get your premium reduced. However, take care not to underinsure your home just to save money. You may regret it if an accident occurs. 

Protect yourself from water damage

Water damage is the most common cause of insurance claims and can increase your premium. By protecting your home against water-related problems, you can help keep your insurance payments as low as possible. 

For example, consider replacing old plastic pipes, which deform and crack over time, with braided steel pipes in your plumbing. This upgrade can significantly lower your home’s risk of water damage. It may require an upfront investment, but it’s well worth it.

Looking for more ways to save on your home insurance? Contact your insurance broker or a financial advisor near you.