9 Ways to Lower Homeowners Insurance Premiums

Owning a home is one of those dreamy dreams for many of us, but when your dream comes true, it becomes very important to protect that home with the right insurance.

However, with rising premiums, it sometimes becomes overwhelming, mainly when you're bound with other household expenses to manage. Need some good news here? We know some practical & effective ways that can help you cut down your premium costs without compromising on coverage.

By making smart financial decisions, working on improving your home's safety, and with the right knowledge of how insurers calculate risk, you can reduce the amount you pay each year. In this blog, we'll talk about 9 proven ways to lower your homeowners insurance premiums and protect your home affordably & confidently.

How to Lower Your Homeowner's Insurance Premiums?

Before we delve into the 9 ways, take note that insurance premiums aren't fixed. They change based on your risk factors, the coverage you take, and even your financial habits. With the correct approach, you can turn several factors affecting premiums into your advantage and secure an affordable home insurance policy that protects your dwelling without any compromise.

1. Raise Your Deductible

If you have higher deductibles, it is one of the best & reliable ways to minimise your premium- it is the amount that you pay out of your pocket before insurers step in.

Example- If your annual premium is $1800 and your deductible is $500, then when you raise it from $500 to $1000, it lowers your homeowner insurance coverage premium by 25%. The reason is that when you have higher deductibles, you take more financial responsibility during a claim, reducing insurers' risk, and in return, they offer lower premiums.

Note- Don't raise deductibles so much that you cannot afford them in an emergency situation.

2. Buy Your Home and Auto Policies From the Same Insurer

Another effective way to minimise your premium is to bundle your insurance policies, but with only one provider. When you ask for multiple policies, like home & auto insurance from the same insurer, they reward you with a discount. This is called a " multi-policy discount," and it reduces premiums for both home and auto insurance.

Apart from financial advantage, bundling insurance also makes it easy for you to manage things like a few documents, not too many renewal dates, and, importantly, one contact point. And when you have companies like Homewell, things get a little easier as they help customers explore multiple insurers under one roof. One single provider for all your different insurance needs.

3. Skip Small Claims

Like you can't complain about everything every time, the same goes here; you should not claim for every loss, especially when it is slightly more than deductible. Companies find it a higher risk when frequent claims are made.

Example Based on Real Scenarios:

If your deductible is worth $1000 and your iPad, worth $12,000, gets stolen. The claims for this will give you below result-

• The insurer subtracts your ₹10,000 deductible

• They further deduct depreciation (as electronics lose value over time)

• Your payout becomes minimal

• Your premium may increase at renewal

According to Bank Rate,  a single claim made related to theft, liability, or fire increased the premiums by 6% the following year. So it's better to pay the minor damages from your pocket to be on the safe side in the long run.

4. Improve Your Credit Score

You may have ignored this, but a good credit score plays a vital role in determining your homeowner's insurance premium. Insurance companies take high credit scores as a good sign of your being financially responsible and therefore less risk to insure.

You can improve your credit score by

• Paying bills on time

• Reducing outstanding debt

• Keeping credit utilization low

• Avoiding unnecessary credit inquiries

With time, these habits not only help you in getting reduced insurance costs but also build your strong overall financial profile. Brands like Homewell also take credit discipline as a necessary part of long-term insurance planning.

5. Make Your Home More Disaster Resistant

Homes that are built in a way to protect the house from natural calamities like storms, earthquakes, or flood often grabs the attention of the insurers as they pose a lower risk of severe damage. You can strengthen your home by adding storm shutters, reinforcing roofs, installing stronger windows, and elevating utilities to control water damage.

A lot of insurance companies, including Homewell's recommended partners, provide discounts for homes that are at some good distance from disaster-prone areas or well-disaster-proofed, because it almost eliminates the chances of major claims. Choosing property protection insurance for such homes further enhances security and ensures long-term financial peace of mind.

6. Make Sure You're Not Over-Insured

Overinsurance can happen when you pay for more coverage than is actually needed. Like, there are cases when homeowners unknowingly insure the value of land along with the home, but they don't know that there is no need to cover land from theft, fire, or storms.

So it is suggested to carefully review your home's rebuild value, not market value, which will help you to pay only for the coverage you actually need. For example, if your home's market value is ₹95 lakh but the cost to rebuild it is ₹65 lakh, insuring it for ₹95 lakh leads to excessive premium payments.

7. Seek Out Other Discounts

Insurance companies give a number of discounts, but they are often either missed by the homeowners or overlooked. However, there are insurance companies like Homewell, where their team often encourages homeowners to actively ask about any query regarding the discounts & available offers, ensuring they never miss any kind of saving they are eligible for.

Discounts You Should Ask About

• First-time homeowner discounts

• Gated community discounts

• Claims-free discounts

• Senior citizen discounts

• Loyalty discounts

• Safety device discounts

• Renovation-related discounts

• Low-risk zone discounts

It is recommended to check with your insurers to unlock savings you may have been missing for years.

8. Stay With the Same Insurer

If insurers are like Homewell, which consistently offers custom home insurance plans at competitive rates, it is suggested to be with them as it benefits you in the long term.

9. Review the Limits in Your Policy and the Value of Your Possessions at Least Once a Year

Your home and belongings keep on changing over time, like new purchases, upgrades, renovations, changes in your lifestyle, and all these have an impact on your coverage needs. So it is suggested to at least review your policy once a year to ensure your coverage is accurate and up-to-date. Plus, you can remove items that are no longer needed for coverage and adjust your policy to reduce the premiums.

Conclusion

To lower your homeowner's insurance premium, there is no need for drastic change; all you need is a thoughtful decision, consistent maintenance, and a curiosity about how insurance works. All these nine strategies help you protect your home without hurting your pocket every year and maintain strong, reliable coverage.

But to know all these things about insurance, you must have someone by your side who gives you proper guidance on choosing the right policies or evaluating your existing coverage. This is where Homewell comes in to navigate you with several options with proper transparency, clarity, and trust.