How to Lower Homeowners Insurance Costs in Michigan
The cost of your homeowners insurance can vary by hundreds of dollars, depending on the insurance company you buy your policy from – and how your policy is structured. That could mean extra lions tickets, or finally being able to kick-start that large renovation project.
Below are five things you can do to lower your homeowners insurance:
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 Facebook, 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 directly. We compare prices and coverage from 17 different insurance companies 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 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 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 – Buy your Home and Auto policies from 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, 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. 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 snow storms 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.
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 rings at 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.