Homeowners insurance is one of those areas that you can really capitalize on when it comes to saving money. Its unfortunate that so many people are
not cashing in on some easy family savings every year.
The easiest way to save on home insurance is by adjusting your deductible. Lets consider the difference in a $500 premium and a $1000 deductible.
Assuming you can come up with an extra $500 when you need it, increasing your deductible to $1000 can save you up to 22% on your premium.
One way this lowers the cost of your premium has to do with how your insurance company looks at deductible risk. Those who have lower deductibles are more likely to file small claims. Individuals with larger deductibles are far less likely to file these claims, since they have to cover the cost of a higher deductible.
The statistical likelihood of filing small claims is calculated into coverages and those with a higher deductible get rewarded.
Its not just about adusting for those who are more likely to file for small claims. The advantage of claiming a higher deductible means youre assuming more risk and in the world of insurance, that always means saving more money.
For those with higher-priced homes, moving that deductible to an even higher amount can create quite a substantial savings.
Going from $1,000 to $2,500 will save an average of 23% but take that deductible up to $5,000 and youre now saving up to a whopping 36% average off of your yearly premium.
We dont know what youre paying for your premium but usually, its worth getting out the calculator to take a closer look. Saving money on your homeowners insurance means more money to spend on the family and its also money that youll save every year.