We all love saving money, especially on essentials like homeowners insurance. Of course, protecting your home is important, but that doesn’t mean you have to overpay. From bundling policies to adding preventive safety features, there are several ways to keep your home protected while staying within budget.
How to Get Affordable Home Insurance Without Sacrificing Coverage
When looking to lower home insurance costs, focus on smart savings strategies rather than reducing important protections with cheap home insurance. By taking a proactive approach, you can reduce premiums while still protecting your home, belongings, and financial well-being against unexpected events. Mercury’s agents have local homeowners insurance expertise backed by nationwide resources to help you maximize savings and make sure you’re getting the best value from your coverage.
Contact us today for a fast, free quote!
Ways to Lower Home Insurance
Here are some practical steps on how to lower home insurance while ensuring you get the best value for your investment, all while maintaining the coverage you need.
Step 1: Review Your Homeowners Insurance Coverage Regularly
“As your life evolves, your homeowners insurance needs to keep pace,” says Adam Bakonis, Director, Product Management. “Things like home renovations, major purchases, rising construction costs, and even changes in your household size can all affect how much coverage you need. That’s why it’s important to take time once a year to review your policy so you’re neither underinsured nor paying for protection that no longer fits your situation.” A quick check-in with your agent can help you adjust limits, update inventories, and confirm your coverage reflects your home and belongings as they are today.
Step 2: Choose a Deductible That Balances Savings and Affordability
Another simple home insurance savings strategy to keep out-of-pocket expenses more manageable is to evaluate your deductible. If, for instance, you currently have a $500 deductible, increasing that to $1,500 could reduce your premium by 10% to 20%, which might save you a few hundred dollars a year. Just keep in mind that while opting for a higher deductible can lower your monthly or annual premium, it also means you’ll need to pay more out of pocket if you file a claim.
Step 3: Bundle Your Home and Auto Insurance
Insurance companies love it when customers keep more than one policy with them, so they reward this loyalty with savings on both policies. Bundling your policies, like home and auto, can give you meaningful discounts—plus you’ll work with only one insurance provider, which can make it easier to resolve claims, get support, and update your policies. If you’re looking for cheap homeowners insurance, ask about bundle discounts that keep your coverage all under one roof.
Step 4: Ask About Homeowners Insurance Discounts
A range of homeowners insurance discounts exists if you know what to ask for. For instance, did you know newer homes often come with lower insurance costs? Homes between 0 and 9 years old may qualify for a new home discount because they’re generally built with safer, more durable materials that meet modern safety standards. Similarly, if you go three or more years without filing a claim, your insurer will see you as a lower-risk policyholder and generally reward you with a “loss-free” discount. So if you’ve recently moved into a new house or haven’t filed a claim in your current one, talk to your provider about these discounts, along with bundling policies.
Step 5: Improve Your Home’s Safety and Security
Another strategy to protect both your home and your wallet is to add safety and security measures to your property. For instance, a water leak detection system can help catch small issues before they turn into big, expensive repairs or losses. Security devices, such as cameras, alarms, and motion detectors, reduce the likelihood of burglary or vandalism. And smoke detectors, sprinkler systems, and fire alarms can all help proactively protect your home and family. Insurance providers often reward these extra layers of risk reduction because they can prevent or reduce the cost of some claims.
Step 6: Keep Your Home Well-Maintained to Reduce Preventable Risks
Maintaining your home is a big step in reducing preventable risks. For instance, having your HVAC serviced each year can reduce the likelihood that your unit will freeze up and require replacement. And cleaning out your water heater tank can extend its life by years. Regular maintenance of your yard matters too, whether it’s a tree with roots nearing a sewer line or branches that could fall on your home after a storm. Preventive maintenance can be the differentiator when it comes to filing expensive claims or preventing avoidable losses.
Step 7: Update Your Policy After Home Improvements or Renovations
You add an extra room to your home and change its square footage, you put in a pool, or you replace your old roof. Any time you make a major home renovation, large purchase, or any significant property change, you’ll need to revisit your current policy to ensure you have the right amount of coverage and to get potential discounts from those improvements or added safety features. Certain improvements may also qualify for discounts. For example, Mercury’s Updated Home Discount is available in California for eligible homes that are at least 21 years old and have had permitted work completed within the past 10 years. Discount availability and eligibility requirements vary by state, so ask your agent whether your renovations qualify.
Adam Bakonis is a Senior Product Manager for Mercury Insurance, overseeing homeowners and landlord products for California. Bakonis originally joined Mercury as a casualty adjuster and has worked in multiple roles, including claims examiner, property field adjuster, claims project and analytics manager.
The Mercury Marketing Team is made up of professionals in the fields of Content Creation, Public Relations, Social Media and Journalism. The team works together to deliver professionally written and researched content to provide information for consumers.