Saving Money on MA Homeowners Insurance

Homeowners insurance is one of many costs related to home ownership. Fortunately, it is also one that has some flexibility. There are many different ways of saving money on MA homeowners insurance. Here are a few.

Bundle Insurance Policies

Insurance companies often offer discounts for having more than one policy with them. Consider bundling your auto and homeowners insurance to take advantage of these discounts. Insurance brokers sometimes have these same discounts even if you have policies with two different insurance companies through them, as long as both are purchased through the same broker.

Compare Bundled Policies

Not all bundles are created equal. Sometimes homeowners insurance may be more expensive with one company but the bundled policies offer a better overall price. When bundling, consider the bundled total rather than the individual parts.

Increase Deductibles

Higher deductibles often mean a lower insurance premium. However, don’t forget to consider the impact of having that higher deductible when you have a claim. If the additional deductible creates a hardship for you, then it may be better to keep the lower deductible and slightly higher premium.

Maintain Good Credit

Most people do not realize that credit scores can affect your insurance costs. Why does it? Insurance companies consider risk as part of their pricing. Those with lower credit scores are historically more likely to file a claim than individuals with higher credit scores. Therefore, people with lower scores are often charged a higher premium. Improving your credit score will therefore help save you money on insurance.

Review Your Policy Yearly

There may be changes in your life that can affect your insurance premiums. It is a good idea to review your insurance policy every year. Be sure to also ask about any new discounts for which you may qualify.

Install a Security System

Most insurance companies offer discounts for security systems. Contact your insurance company ahead of time for information on the amount of savings applicable. You can weigh this against the cost of installation and monthly monitoring for your security system.

Review Your Coverage Amounts

Your insurance coverage is based on the cost to rebuild your home. This is typically less than the market value of your home (since market value includes the value of your land). Review your coverage amount with your insurance company to verify that it is correct. Using the wrong value may result in paying too much for your insurance.