8 Reasons You May Be Paying Too Much for Homeowners Insurance

man sitting in front of homeowners insurance policy

What if you were getting robbed every month and you didn’t even know it? 

That’s what it feels like when you find out you are overpaying for home insurance. There’s only one thing worse than finding out you’re paying too much: Never finding out at all! 

Do you have the best home insurance? Here are 8 ways to tell if your home insurance is the best for you and your needs. 

1. You Haven’t Created an Insurance Bundle Yet 

Do you have multiple insurance policies through the same carrier (for example, both home insurance and automobile insurance)? If you haven’t already created an insurance bundle, then you’re definitely paying too much on your premium. 

Every major insurer offers a discount for bundling your insurance packages together. Offering this discount is a great way to encourage customer loyalty. Unfortunately, many customers don’t know about it. 

Long story short? Creating a bundle may be the quickest way you can stop overpaying for homeowners insurance. 

2. You Have More Home Insurance Coverage than You Need 

Getting the right amount of insurance can be a major balancing act. If you get too little coverage, you could be just one catastrophe away from going into major debt. If you get too much coverage, then you are paying too much for your insurance each month. 

How can you tell if you are paying for more coverage than you need? You need to carefully review your policy and see how well it stacks up to the time you have owned the house. 

For example, if you live outside of a flood zone and have a special flood rider on your policy, you may not need that rider. Or you might have coverage for your personal possessions that far exceeds their actual value. In each of these cases, adjusting your policy can make your insurance more affordable. 

3. A Low Credit Score Can Impact the Price of Home Insurance 

Insurance companies have many factors they look at before setting your premium. Depending on which state you reside in, one of those factors is your credit score. 

Simply put, if you have a credit score below 700, your insurance is probably more expensive than it would otherwise be. However, you can work to get a higher score by signing up for a free credit monitoring service and following some of its personalized suggestions. 

Once your credit score goes up, you can let your insurance carrier know. This may lead to a reduction in your premium. And if you haven’t checked your credit score lately and you find that it has gone up, be sure and alert your insurance company so they can lower your rate. 

4. You’ve Filed Multiple Home Insurance Claims 

One of the unfortunate truths about homeowners insurance is it becomes more expensive when you file claims. So if you have filed multiple insurance claims, you are almost certainly paying more for your homeowner’s insurance than you once did. 

To keep this from happening, consider only making a claim on very major damage. For smaller accidents, it may be easier to fix things yourself. If you’ve already had multiple claims, you should consider switching to a new carrier (more on this later). 

5. You Haven’t Updated Your Insurance Company about Home Improvements 

One thing you and your insurance carrier have in common is that you both want your house to be as safe as possible. This is why you need to let your carrier know about any home improvements that help make your home safer. 

For example, installing features like smoke alarms and burglar alarms help protect your home from fire and theft. If you let your carrier know you installed these new features, they may be willing to lower your premium. 

6. You Haven’t Had Your Home Regularly Inspected 

When was the last time you had your home inspected? If they are being honest, most homeowners only have their houses officially inspected during the initial home-buying process. 

That’s because hiring a licensed inspector costs both time and money. However, skipping out on inspections every few years may cost you more in the long run. 

An inspector can help catch small issues before they become major problems. They can also make recommendations for how to make your home safer. By following their recommendations and then notifying your carrier, you can lower your monthly premium and also improve the odds of a positive outcome on your next claim

home inspector standing outside of house

7. Your Insurance Deductible Is Too Low 

What if you tried to save money and ended up paying too much instead? That happens to most homeowners who have a low deductible. 

On paper, a low deductible sounds like a great way to achieve affordable home insurance. With low deductibles, you won’t have to pay as much out of pocket when you have to file a claim. 

However, if you live in a safe neighborhood where neither you nor your neighbors have had to file many claims, a low deductible may be overdoing it. Since low deductibles lead to higher premiums, raising your deductible is one of the easiest ways to lower your premium. 

Your deductible should be as high as you are comfortable paying out of pocket if you do have to file a claim. 

8. You Haven’t Been Regularly Comparing Insurance Rates 

Do you pay for your homeowners insurance monthly? Most homeowners do. In that case, nothing keeps you from switching to a new insurance carrier at any time. 

To keep yourself from overpaying for homeowners insurance, it’s important to frequently compare insurance rates. Get quotes from multiple carriers. When you find a quote better than your current plan, go for it. 

Ultimately, saving money on home insurance is all about finding a carrier that offers the price, coverage, and service you deserve. 

Get the Best Homeowners Insurance Today! 

Now you know the reasons you may be paying too much for homeowner’s insurance. But do you know where you can finally find the insurance plan you and your home deserve? 

Here at InsureOne, we’re happy to take care of all your home insurance needs. We are always ready for you to get a home insurance quote online. Alternatively, you can pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to come into one of our convenient nearby offices