Understanding Insurance Policies

Understanding Insurance Policies

Worried About Rising Home-Insurance Premiums? Proactive Ways to Get a Lower Rate

Samantha Reynolds

Just like health insurance, most other types of insurance are also seeing rising premiums, including those for home-insurance coverage. In fact, recent information suggests that premiums may soon be rising by as much as 10 percent. What most homeowners do not know, however, is that home-insurance premium rates can sometimes be lowered. If you are a homeowner who has received notice that your home-insurance rates are rising this year, consider trying one or more of the following ways to find and secure a better rate. 

Examine your current policy for unnecessary coverage or potential ways to save

One of the first ways to find savings on your home-insurance premiums is to make sure that your current policy does not include coverage that you do not need while offering you the maximum savings potential. Examples include: 

  • Coverage on the land - this type of coverage is typically unnecessary because the land value will usually remain intact and relatively stable, even after storm, fire, or other types of damage to the structure and its contents
  • Riders that no longer apply - such as coverage for a pet that you no longer own
  • Low deductible amounts - raising low deductibles is a great way to instantly create significant savings on the cost of your home-insurance policy

Make sure you are being credited for recent renovations and upgrades

Home-insurance companies know that homes that are properly maintained and updated are often less expensive to repair should a claim arise. This is why they often offer lower insurance premium rates for major updates and renovations, such as: 

  • replacement of major systems, including HVAC, plumbing, and electrical
  • adding a new roof 
  • making improvements to the exterior of the home, such as adding new siding or replacing old windows with more efficient ones

Other improvements that lower risks of damage to the home

Insurance companies also sometimes offer lower premiums when homeowners make improvements around the home that make it less susceptible to damage from fire, wind, storms, or other risks common to the area. These include: 

  • clearing away brush, vegetation, and debris near the home that could make it more susceptible to fire 
  • adding storm shutters, water barriers, and other improvements to reduce potential storm damage
  • making landscaping or drainage changes to help prevent water from reaching the home during flooding
  • removing unnecessary or condition-impaired structures from your property so that insurance coverage is not needed for them
  • adding security systems to help deter theft and burglary attempts

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About Me
Understanding Insurance Policies

After I moved out of my parent's home, I started learning more and more about insurance policies. I was involved in a bad car accident, and I ended up working with my car insurance company as well as my medical and dental insurance companies. I paid my premiums and enjoyed coverage, but I didn't really understand how the entire insurance claim process worked. I wanted to make this blog to help other people like me to learn more about insurance coverage. Check out this blog for more details on insurance coverage, how to file a claim, and what you should expect throughout the shopping process.