Although homeowner’s insurance is a necessary expense, there are several ways to reduce these costs with or without spending money on improvements, according to Nerd Wallet.
Some of the simplest reductions, such as bundling the home insurance with auto insurance through the same company or improving your credit score, won’t cost a penny and will likely only require a short phone call. Similarly, raising the amount of the deductible on a policy or lowering the maximum payout for possessions can reduce the rate without any upfront cost. According to Bankrate, you can also receive discounts between 1-20 percent for being a nonsmoker, over the age of 55, part of a homeowner’s association, and not having filed a claim in many years.
For those looking to spend money on home upgrades and renovations, there may be discounts available to help offset some of that spending if the changes make the home safer or more durable.
Many older homes, for instance, have older wiring that poses a much more significant risk of catching fire and causing property damage that insurance companies will often grant a 10 percent reduction in premiums to avoid the potential payoff. In fact, home electrical fires cause an average of $659 million in losses each year while a wiring-related issue causes more than half of those reported. Meanwhile, wind and hail caused by powerful weather can wreak havoc on an unprepared or deteriorated roof, and discounts of 5-10 percent can be had for installing newer, impact-resistant roofing material.