Can I Lower My Homeowner’s Insurance Cost?

take these steps to lower the cost of homeowners insurance

Homeowner’s insurance is essential in protecting you and your home in the event of damage. On average, homeowner’s insurance cost $2305 in 2020 based on a $300,000 in dwelling coverage and a $1,000 deductible. There are certain steps you can take to decrease the cost of your homeowner’s insurance

1. Bundle and take advantage of discounts. 

Insurance companies offer many different incentives to purchase their insurance. These incentives normally include bundling and discounts. Bundling is when you purchase more than one type of insurance with that insurance company. For example, you could purchase both your home and auto insurance with one company and get both items for cheaper. There are also different discounts to take advantage of. For example, retirees often get discounts at different companies. If you are employed, your company may offer a group employee discount. Be sure to ask an agent which discounts are best in your area.

2. Optimize your insurance plan. 

One major way to decrease your insurance plan costs is to optimize your plan. This means finding the best plan that prioritizes your needs, including your budget. An agent is often best-equipped at helping you during this step. Optimizing your plan also includes doing things like increasing your deductible to decrease your premium. Some agents estimate that if you increase your deductible to $1000, you can save up to 25% on your annual premium. 

3. Be strategic about which home you buy. 

Each home has different problems. You can decrease your insurance costs by planning ahead before purchasing a home. For example, if your home is in a flood or earthquake zone, you will pay more. You can check out the CLUE, the Comprehensive Loss Underwriting Exchange report of the home, to estimate its potential insurance costs. 


You can also make changes to the home you already purchased. For example, you can make it more secure with a home security system to protect it against theft. You can also make it more disaster-resistant by doing things like adding storm shutters, reinforcing the structure, or using materials specific to that area’s common natural disasters. Decreasing your home’s risk of damage via theft, natural disaster, or fire can lower your insurance premiums. 


There are several ways to decrease your insurance premium. Call a Redwood Agent to get started today!