The cost of your homeowner’s insurance can vary by hundreds of dollars, especially in Michigan. Premiums depend on the insurance company you buy your policy from, how your policy is structured, driving record, etc. Saving on your home coverage could mean extra lions tickets, or finally being able to kick-start that renovation project.
5 Things Michiganders Can Do To Lower Their Homeowner’s Insurance Premiums
1. Shop around
It may take some time, but shopping around could save you a good sum of money. You can start by asking your friends, searching on the internet, or contacting the Michigan Department of Insurance and Financial Services.
If you’d like someone to do the work for you, you can also contact us (Compass Insurance Agency) directly. We compare prices and coverage from 18 different insurance providers in the state of Michigan, all while providing expert advice and assistance – for free!
2. Review the value of your possessions and limits in your policy once a year
You want your policy to cover any major additions (purchases) to your home. At the same time, you do not want to spend money paying higher premiums on the coverage you do not need. If your three-year-old gaming computer is no longer worth the $6,000 you paid for it, you will want to reduce or cancel the floater insurance on it. This will, in turn, lower your overall homeowner’s insurance premium.
Floater Insurance: A type of insurance policy that covers property that is easily movable and provides additional coverage over what normal insurance policies do not. This can cover anything from expensive jewelry to high-end technology.
3. Bundle your home and auto policies with the same insurer
There is a reason why so many companies are promoting bundles. Not only does it allow the companies to give you better comprehensive coverage, but it also saves you money. Companies that sell homeowners, auto and liability coverage can take 5 to 15 percent off your premium if you bundle with them. At Compass Insurance Agency, our clients see an average savings of $642 per year.
However, you still want to shop around and make sure that the combined price is lower than buying the different coverage from different companies.
4. Make your home more disaster resistant
Contact your insurance agent or company representative to see what steps you can take to make your home more resistant to windstorms and other natural disasters.
Adding storm shutters, reinforcing your roof (we know how harsh those Michigan snowstorms can be), or buying stronger roofing materials can potentially save you a good chunk of change on your premium. Those individuals that live in older homes can also take initiative by modernizing your heating, plumbing and electrical systems. This will reduce the risk of fire and water damage – which should lower your premium.
Learn more about insurance tips that can save homeowners money.
5. Improve your home security
You can usually receive discounts of at least 5% for a smoke detector, burglar alarm, or dead-bolt locks. Some companies have offered to cut premiums as much as 20% if the customer installs a sophisticated sprinkler system and a fire and burglar alarm that ring the police, fire or other monitoring stations.
The prices of some of these systems may seem staggering at first; however, thinking long term helps in this case. With some systems, you may be able to make your money back within the first year.
Learn more about home security and theft prevention tips here.