Tips for Saving Money on Your Home Insurance Premiums

Insurance premiums take a big bite out of your budget. Average monthly premiums are over $100 in many parts of North America. But there are ways you can save on your insurance, whether it’s in regard to the premiums themselves, or making a claim. Some of these tips can help you find more wiggle room in your monthly budget.

Saving Money When You’re Making a Claim

Let’s suppose something has happened, such as a fire or flood, and now you need to use your home insurance to recover. The process is started by making a claim with the insurance company. It can be a complicated process to navigate, especially while dealing with the emotional effects of the tragedy. Getting the help of a public insurance adjuster or insurance lawyer is a good way to make sure the process is handled correctly.

You will have to pay a public adjuster or insurance lawyer, so it usually makes the most sense to hire a professional when you have a significant (high value) claim. One way you can keep costs down is negotiating to hire a professional based on a contingency fee structure, i.e., a percentage of your total payout.

Some law firms focus on insurance claims, and they may have a different approach to contingency fees. For example, with Virani Law, a firm specializing in insurance claims, contingency fee arrangements might even only be applied to funds settled above-and-beyond your insurance company’s initial offer. That way, Virani Law has helped numerous families save hundreds (or more). Families secure fairer insurance settlements without going out of pocket even more money to pay their representative.

Making Small Claims

Many homeowners avoid making claims for smaller repairs out of a fear that their premiums will rise. They believe it’s cheaper in the long-term to pay out of pocket. But 57% of homeowners said they saw no increase to their premiums after making a claim for less than $5,000. You could be leaving money on the table by ignoring smaller claims. 

Save by Raising Your Deductible

When it comes to your premiums, there are several ways you can save money every month. The first is by raising your deductible, which is the amount you have to contribute to paying for damages to your home before your insurance kicks in.

One word of caution: should something happen, raising your deductible will cost you more. The higher the deductible, the more you have to pay before your coverage will kick in the rest. You may regret your decision later.

There’s one quick way to determine if raising your deductible is the right way for you to reduce your insurance premiums: consider whether you have an emergency fund that would cover that amount. If you already have the emergency fund to cover it, you can take those savings on your premiums and invest them elsewhere.

Making Preventative Renovations

You might also qualify for lower premiums with the right renovations. While you might think that renovating would increase your insurance premiums (since you’re raising the value and replacement costs of your home), anything you can do that reduces the risks of damage can help you save on insurance. These could include:

• Replacing an aging roof (which could save up to 20% on premiums);
• Installing a sump pump, backwater valve, or other measures that could protect your home from water damage; or
• Replacing wiring in an older home, as wiring is a major risk factor for fires.

For many households, finding news way to save makes a major difference. Explore your options for saving on insurance. 

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