Getting the Best Home Insurance Rates

Purchasing adequate home insurance protects the biggest investment most people ever make – their residence. But overpaying for coverage wastes money better spent elsewhere. With savvy shopping, comparison tactics, and policy customization, homeowners can secure essential property and liability coverage at the best possible rates.

Understand Different Home Insurance Types

Home insurance policies come in several varieties offering varied protections:

HO-1 covers the house structure for named disasters and losses. Provides minimal coverage.
HO-2 adds coverage for other losses like theft, water damage, appliance/system breakdowns. Most popular standard policy.
HO-3 provides comprehensive coverage including HO-2 perils plus flood, earthquakes and more. Recommended for higher value homes.
HO-4 insures rented condos/apartments covering personal belongings and liability. Does not cover building.
HO-5 offers expanded coverage for luxury homes including art, jewelry and valuable collections.
HO-6 tailored for condo owners, covering structure and personal property within units. Must still insure personal additions and possessions separately.

Review needs and valuations to select optimal coverages. Many lenders require at least HO-3 for mortgaged properties.

Increase Deductibles to Lower Premiums

Accepting higher deductibles reduces premiums substantially. For example, raising deductibles from $500 to $1000 could decrease premiums 25% or more.

Evaluate how much you can afford to self-insure out of pocket if making a claim. Set deductibles at reasonable levels but not so high that you cannot cover costs for average losses.

Keep savings reserved to pay deductibles if incidents occur. This allows maximizing premium reductions while still being prepared for common repairs.

Certain states may cap deductible amounts at less than 20% of dwelling coverage. Check local regulations regarding maximum allowed deductibles.

Audit Coverage Limits and Endorsements

During initial selection and at each renewal, scrutinize your coverage limits for dwelling, other structures, personal property, loss of use, liability, and medical payments.

Align limits with local construction costs and the true replacement value of your home and belongings accounting for future inflation. Use online calculators as a starting point.

Add endorsements like guaranteed replacement cost, sewer/drain backup, water leakage, ID theft and equipment breakdown to customize protection. But avoid overlaps that insure the same asset multiple times.

For expensive valuables like jewelry, artwork and collectibles, consider itemizing them on scheduled personal property riders versus general coverage limits.

Compare Quotes from Multiple Insurers

Do not simply renew the same policy year after year. Shop rates every 1-2 years soliciting new quotes around renewal time. Independent agents provide quotes from multiple insurers for best price comparisons.

Look beyond big ad spending carriers and seek small insurers you can only access through brokers. Direct-to-consumer insurers like Geico and Progressive may provide competitive bids as well. Cast a wide net.

Focus comparisons on total yearly costs – premiums less discounts plus deductibles. Consider bundling with auto insurance for multi-policy discounts up to 30% with some insurers.

Compare coverage comprehensively point-by-point, not just premium price. Ensure deductibles, limits, and endorsements align on a policy to policy basis before judging cost.

Take Advantage of Available Discounts

Research and request all discounts your insurer provides to policyholders meeting certain qualifications. Common categories include:

Multi-policy bundling for home and auto
New home warranty discounts
Renewal discounts for years insured continuously
Safety feature discounts like alarms, sprinklers, storm shutters
Retiree and senior citizen discounts
Student good grades discounts
Security system discounts
Paperless billing and auto-pay discounts

Document eligibility for all available savings opportunities when shopping rates and upon renewal. Discounts provide an easy way to lower premiums annually.

Maintain Good Credit History

Most insurers reference credit-based insurance scores when underwriting home policies. Keep credit utilization low, make payments on time, avoid new credit applications before shopping rates, and correct reporting errors.

Maintaining “Excellent” tier scores (800+) typically saves up to 25% compared to “Poor” scores (600 or below). For couples, use the higher score’s savings when taking out joint policies.

Check credits reports and histories from all three bureaus 3-6 months before renewal to allow time for optimizing your rating tier before insurers pull new scores.

Enhance Home Security

Adding security systems, video cameras, fencing, sprinklers, fire extinguishers, and sturdy storm shutters qualify for premium discounts from 5-15% with many insurers.

Make sure to notify your agent about any new loss prevention measures to earn savings on the next renewal. Installing devices after securing the policy does not automatically apply discounts retroactively.

Self-monitoring security systems receive the largest discounts. But professionally monitored systems do qualify for some savings, and may fend off perils faster through 24/7 monitoring.

Raise Liability Coverage

Review liability limits against your personal assets at least annually. Umbrella liability policies add affordable extra layers of coverage atop standard policies.

As your net worth grows over time, liability limits should increase proportionally. Extra coverage avoids potential losses from lawsuits exceeding your current limits.

For only $200-300 annually, extra $1 million umbrella coverage additions prove worthwhile peace of mind for an extra $1-2 million total protection.

Claim Free Credits Over Time

Maintaining home insurance policies without filing any claims generates claim-free credits reducing premiums after a set number of years. For example:

Geico offers claim-free discounts starting after 3 years
Allstate provides claim-free savings after 5 years
State Farm deducts premiums by 45% after 10 claim-free years

Avoid submitting minor claims unlikely to breach deductibles. Multiple small claims hurt savings opportunities more than infrequent major claims.

Reevaluate as Life Circumstances Change

Review home insurance needs whenever life changes occur that may impact coverages, including:

Marriage or divorce
Birth of children
Adult children moving away
Major home renovations or additions
Purchasing expensive jewelry, artwork and other valuables
Home-based businesses or renting out space
Teenagers becoming licensed drivers
Retirement and fixed incomes

Communicate all life changes to insurers promptly to adjust policies and pricing accurately based on risk profiles.

Closing Thoughts

The best home insurance balances tailored coverage and peace of mind with affordable premiums. Spending time shopping policies, scrutinizing billing, maintaining good credit, enhancing security, minimizing claims and communicating life changes positions homeowners to find the ideal value. While home insurance represents an ongoing expense, implementing these practices makes protection much more cost-effective long-term.