Mortgage Insights Blog

If you ever wondered how you might be able to save on homeowner insurance, I’ve compiled six suggestions. To get started, be sure you ask your insurance agent to provide you with a written estimate for each home improvement listed below to make sure the potential cost of the upgrade is worth the discount on the insurance. And in some cases, insurers can’t provide all of the discounts when taken together because there would be little to no premium left to collect.

1. Remove structures. Remove or reduce additional structures coverage from your homeowner policy. It’s typically automatically included in your policy, even if you don’t have a stand-alone shed, garage or cottage. This alone could save you about 5% on your annual premium.

2. Get security alarms and locks. By simply installing smoke detectors, burglar alarms and dead-bolt locks you could save at least 5% according to a report from the insurance institute. Also consider purchasing higher-end security and sprinkler systems as some insurers offer premium discounts of up to 20% for these items, but be sure the discounts outweigh the cost.

3. Reduce damage risks. Modernize your heating, plumbing and electrical systems to reduce the risk of fire and water damage, two of the most costly types of storm claims. For instance, replace rubber hoses behind your washing machine with stainless-steel ones. They’re a bit more expensive but are unlikely to crack or burst.

4. Opt for less coverage. Consider reducing your home contents coverage, especially if you own items that are worth less now and you would be willing to buy second-hand to replace them. (That said, it makes sense to buy replacement coverage for your home. You want enough to rebuild it if a hurricane strikes, which may be more than the value of the home.)

5. Use mulch. Replace gravel or rocks on your lawn with safer materials such as shredded bark. There typically aren’t discounts for this, but it would help prevent the rocks from flying and damaging your home or car.