Many homeowners, particularly first-time home Sacramento buyers, overlook the importance of homeowner’s insurance. They are aware that they require it, but they frequently go for the most convenient option. However, such strategy could end up costing you a lot of money. The annual cost of insurance might vary by hundreds of dollars depending on the size of your home and the insurance company. Shopping around and employing specific money-saving tactics might thus pay off handsomely. Check out these 5 strategies to save money on Sacramento homeowner’s insurance.
1. Increase the Deductible
Simply raising your deductible is a simple and easy approach to save money on your Sacramento homeowner’s insurance. Raising your deductible from $500 to $1,000, for example, might save you up to 20% on your insurance.
Increasing your deductible will allow you to keep more money in your pocket each month rather than paying it to your insurance company. However, if you do this, be sure you have enough money set aside to handle the higher out-of-pocket costs if you need to file a claim.
2. Make Your Home More Secure and Disaster Resistant
Another way to save money on your homeowner’s insurance is by making your Sacramento home more secure and disaster-resistant.
Even seemingly little, fundamental things can save money when it comes to home security. Installing smoke detectors, deadbolts, and a burglar alarm, for example, can fetch you a 5% discount. If you go one step further and add a sprinkler system and a monitored fire alarm, you might save anywhere from 15% to 20%.
If you live in a disaster-prone location where your Sacramento property is at risk of flooding or tornadoes, you can save money on your homeowner’s insurance by taking disaster-prevention measures. Installing windows with shatterproof glass and shutters, as well as fortifying the roof, are some options.
Contact your Sacramento agent to find out whether your home is located in a disaster-prone area and what you should do.
3. Look Into Special Discounts
You can often save on your homeowner’s insurance in Sacramento by taking advantage of certain special discounts. You may be able to get a discount on your insurance if . . .
- No smokers live in the home
- The home is a recent purchase
- You opt for paperless, automatic premium payments
- You work in a specific career field such as teaching or firefighting
4. Bundle Homeowners Insurance With Auto Insurance
Many insurers offer bundling as a way to save money. You can save anywhere from 5% to 15% on your homeowner’s and auto insurance if you bundle them together. Of course, this will vary depending on the insurance company, but most insurers offer savings if you purchase multiple policies from them.
5. Improve Your Credit Score
Improving your credit score is a method for saving money on Sacramento homes insurance that many people are unaware of. Because a credit-based insurance score is utilised to set your rates in many jurisdictions, your credit score can have a significant impact on your insurance prices.
If you have a credit score below, say, 630, you may have to pay higher rates. In that case, you have two options to improve your score and get lower rates:
- Carefully examine your credit report for errors (which are more common than you may think) and have them corrected.
- Get your score up by taking effective steps such as paying bills on time and paying down (or off) your credit card debt.
And Consult Your Agent
These are some of the most effective strategies to save money on homeowner’s insurance in Sacramento or elsewhere. However, there is more you can do, and your agent can assist you in determining the best course of action in Sacramento. So, if you’re ready to save money on your homeowner’s insurance.