5 ways to lower your insurance premium.

When was the last time you reviewed your homeowners insurance policy? If it’s been more than a year you could be missing out on savings. Here are five ways you could lower your insurance premium.

Increase your deductible

The deductible is what you pay before your policy kicks in to cover a claim. By raising your deductible it lowers what an insurer must pay out in the event of a claim and results in a lower premium. Raising your deductible from $500 to $1,000 could save as much as 25%, according to the Insurance Information Institute.

Improve safety and security

Systems and features that protect your home from damage can also help reduce your insurance premium. Basic safety devices such as smoke detectors, dead-bolt locks and burglar alarms can decrease your premium by 5%. A more advanced sprinkler system and alarm system that notifies the police or fire department could cut your premium by 15-20%.

You might be eligible for a group discount

Sometimes insurers offer discounts to groups and membership association. For example, alumni associations, special interest groups like AARP, wholesale clubs like Costco, professional groups, employers and unions often offer affiliation discounts.

Check for discounts with any group of which you’re a member. Alternatively, consider asking your insurer if they offer any group-affiliated discounts.

Bundle policies

When you bundle multiple insurance policies together, some insurers offer a multi-policy discount. When shopping for homeowners’ insurance, consider asking for a quote on your vehicles—including cars, motorcycles and boats. Bundling your policies could save up to 18%.

Eliminate high-risk

Insurance premiums automatically increase for common items that could put others in danger, including swimming pools, hot tubs, ponds, trampolines, etc. Consider avoiding these high-risk items to keep your premiums lower.

Additionally, ownership of some dogs breeds can result in higher insurance premiums, such as pit bulls, Rottweilers, Doberman pinschers and German shepherds. If you’re considering getting a dog, be sure to research which breeds your insurer considers high-risk and consider choosing dog that won’t raise your homeowners insurance.

Save your savings

When you reduce your insurance premium, redirect the amount you’d have otherwise spent into a Consumers savings account. Designate the savings for any possible deductibles and you’ll be better prepared if you have to make a claim on your homeowners insurance.

Consumers helps thousands of members finance land, first and second homes, and home improvement projects each year. We’d love to help you with a mortgage or home equity line of credit; contact us online or call us at 800.991.2221.