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How Much Can You Save on Homeowners Insurance

February 1, 2023


Property owners must protect their equity investment with comprehensive homeowners insurance coverage to avoid liabilities. Exploring strategic ways to save money on your home insurance can help make this critical protection fit into your household budget more efficiently.

Ways to Save on Homeowners Insurance

Here are a few steps that could reduce your premiums by hundreds or thousands of dollars.

Structure Your Homeowners Insurance Coverage Limits Discerningly

Modifying your coverage limits could lower insurance costs. It is essential to recognize that reducing coverages may not necessarily entail compromising on the practical protection you get from a policy. 

In determining what value to assign to coverages, some homeowners need to set limits in proportion to their home’s market value. In reality, the purpose of this coverage is not to insure the value of what you paid for your home or what you would sell it for. Likewise, homeowners’ insurance generally does not insure the value of the lot which holds your property. Instead, the principal utility of home insurance is to repair the damage that your home sustains from an event such as a fire or significant weather event. 

Review your current coverages with an experienced agent that specializes in homeowners policies. Some helpful insight can steer you towards more practical policy valuations and spare you from paying for coverage you do not need.

Make Smart Improvements To Your Home

Home improvement projects that make your home more resilient against the elements make it less susceptible to many common types of property damage. Replacing windows or repairing a roofing system will reinforce your home’s structural integrity, reducing the likelihood of common claims against home insurance policies and mitigating carriers’ risk exposure. 

When you’re considering how to save money on homeowners insurance, bear in mind that security enhancements may also be worthwhile. Fire protection systems that provide continuous monitoring and installing electronic access controls, for example, can safeguard homes and their inhabitants.

Raise Your Homeowners Insurance Coverage Deductibles

Opting for a low deductible makes a policy more costly than it would be with a higher deductible. With a low deductible, you will pay a significantly smaller percentage of any claims for damage than a carrier would. It raises carriers’ risk exposure, and they have to offset risk by charging higher premiums. 

A high deductible means less risk for carriers, so raising a deductible could mean they can charge you less on monthly, quarterly, or biannual premiums. Of course, you will have greater out-of-pocket expenses if you must file a claim against your homeowners’ insurance coverage. You will be responsible for paying a higher percentage of a claim or the full value of a deductible that has a fixed amount before you may utilize a policy’s benefits.

Your savings on your premiums can make a higher deductible less of a hardship. Lastly, getting through a policy period where you have lowered your deductible without making any claims against your policy will save you money without any drawbacks.

About E.J. O’Neil Insurance Agency

Since 1898, E.J. O’Neil Insurance Agency has provided homeowners with reliable coverage and high-quality customer service. Today, we offer a variety of policies, including commercial, boat, automobile, homeowners, motorcycle and renters insurance. Quotes are free by phone or online request, and we can provide notary and other services at our location. We pride ourselves on caring for customers when they need it most, proving it with over $3.2 million in claims paid over 12 months. To find the right coverage for your need, call 413-594-4757 or visit us online.