Home insurance is an expense you will always have if you own a house. But did you know that there are ways to lower your premiums without compromisng your coverage? Keep reading – this article provides some tips for reducing your home insurance costs here in the Tri-Cities while maintaining adequate protection for your property. We do business with Adam Hoover at Country Financial (https://advisors.countryfinancial.com/usa/wa/kennewick/adam-hoover). Adam has been great helping us to understand how to maximize our home owner’s policy, keep rates low, and ensure we have enough insurance in case we experience a loss.

1. Increase Your Deductible

One of the most effective ways to lower your home insurance premium is to increase your deductible.

How It Works:

• Definition: A deductible is the amount you pay out-of-pocket before your insurance coverage kicks in.
• Higher Deductibles Equal Lower Premiums: Choosing a higher deductible can actually lower your premiums a lot. For example, increasing your deductible from $500 to $1,000 could reduce your premium by up to 25%.

Important Note: Always make sure that you can afford to pay the higher deductible if you need to make a claim.

2. Bundle Your Insurance Policies

Insurance companies offer discounts for bundling different types of insurance, such as home and car insurance.

Benefits of Bundling:

• Discounts: Many insurers offer a discount of 5% to 15% for combining home and auto policies.
• Simplified Management: Having all your insurance policies with one provider simplifies things, too.

Pro Tip: Compare the bundled rate with separate policies to ensure you’re getting the best deal. Always shop around and compare coverage with other companies.

3. Improve Home Safety and Security

Installing safety features can make your home safer and reduce your insurance premiums. Ask your insurance agent what you can do to lower your premiums, whether you live in Kennewick, Richland, or Pasco.

Home Safety Upgrades:

• Smoke Detectors: Ensure that your home has working smoke detectors on every floor.
• Security Systems: Installing a monitored security system can lead to discounts of 5% or more.
• Fire Sprinkler Systems: While more costly, a fire sprinkler system can lead to substantial long-term savings on your insurance. If you have a business in the home, and especially if you carry inventory, this is something worth looking in to.

Product Recommendation: Invest in a smart home security system that integrates with smoke detectors and water leak sensors for enhanced safety and potential premium discounts. The technology is very prevelant these days and super affordable.

4. Maintain a Claims-Free History

Insurance companies often offer lower rates to policyholders who have not made recent claims. Only make a claim if you have to financially. The longer you go without making a claim, the better chances your premiums will not increase.

Why It Matters:

• Claims-Free Discounts: Maintaining a claims-free record for several years can qualify you for a discount of 10% or more.
• Reduced Risk Perception: A history of no claims signals to insurers that you’re a lower risk and aren’t going to call them every time you suffer a small loss.

Tip: Only file claims for significant damage and consider paying for minor repairs out of pocket to keep your claims history as clean as possible. If the cost of repairs is less than your deductible, it makes zero financial sense to make a claim.

5. Make Home Improvements

Certain home improvements can lower your insurance premium by making your home more resilient to damage.

Improvements That Help:

• Roof Upgrades: A new, impact-resistant roof can reduce your premium, especially in areas prone to hail or windstorms. We got a new roof last year and saw our premiums get reduced significantly.
• Window Reinforcements: Installing storm shutters or impact-resistant windows can lead to discounts. Ask your agent about higher quality windows, too.
• Plumbing and Electrical Updates: Upgrading old plumbing and electrical systems can reduce the risk of water damage and fire, leading to lower premiums.

Expert Tip: Consult with your insurance provider before making home improvements to ensure they qualify for premium discounts.

6. Review Your Coverage Annually

Your home insurance needs may change over time, and regularly reviewing your policy can help identify opportunities for savings. Read our article here on reviewing your policy: https://dryerfirefighters.com/reviewing-your-home-insurance-policy-annually-why-its-important-and-how-to-do-it/

What to Review:

• Coverage Limits: Ensure that you’re not over-insured for the value of your home and personal property.
• Endorsements and Riders: Remove any endorsements that you no longer need.
• Policy Discounts: Check for new discounts that you may now qualify for, such as senior or loyalty discounts.

Pro Tip: Work with an independent insurance agent to compare policies and make sure you’re getting the best rate. We recommend Adam Hoover at Country Financial (https://advisors.countryfinancial.com/usa/wa/kennewick/adam-hoover)

7. Improve Your Credit Score

In many states, including Washington, some insurers use credit scores as part of their risk assessment, which can affect your premium.

Credit Score Tips:

• Pay Bills on Time: Timely bill payments positively impacts your credit score.
• Keep Debt Low: Lowering your credit utilization ratio can help improve your score.
• Monitor Your Credit Report: Regularly check your credit report for errors and dispute any inaccuracies.

Important: Improving your credit score takes time, but it can lead to lower premiums over the long term.

Conclusion

Lowering your home insurance premium doesn’t have to mean you have to compromise on coverage. By increasing your deductible, bundling policies, improving home safety, maintaining a claims-free history, you can reduce your premium while still protecting your home. The team here at Dryer Fire Fighters encourages Tri-Cities homeowners to be proactive in reviewing their policies and exploring cost-saving measures that maintain adequate coverage for their home.