Your home is your biggest investment and your safe place. Here in North Carolina, that means protecting it from everything from summer hurricanes on the coast to winter ice storms in the mountains. Home insurance is the safety net that lets you sleep at night, knowing you’re covered.
But let’s be honest: seeing that insurance bill can make you wince. It often feels like the cost only goes up. What if we told you there are simple, easy-to-do things that could lower your bill? You don’t need to be a money expert to understand them.
We’re breaking down seven straightforward ways to lower your home insurance premium (that’s your bill!) and keep more money where it belongs: in your wallet.
The NC Homeowner’s Guide to Saving Money Right Now
Trick 1: Bundle Your Policies for Big Savings
This is often the easiest and quickest way to save money. Do you have car insurance? If you buy your home insurance and auto insurance from the same company, they will likely give you a significant discount on both policies. This is called bundling.
Insurance companies want more of your business, so they reward you for giving it to them.
- Think of it like this: It’s like buying a combo meal at a fast-food restaurant. Ordering the burger, fries, and drink together is cheaper than buying each item separately. Bundling your insurance works the same way.
- Actionable Tip: Call your insurance agent and ask this simple question: “How much would I save if I bundled my home and auto insurance with you?” The answer might surprise you.
Trick 2: Make Your Home a Safer Fortress
Insurance companies love safe homes. A safer home means you are less likely to file a claim, which saves them money. When you take steps to reduce risks like theft or fire, they reward you with lower premiums.
You don’t have to turn your house into a high-tech command center to see savings.
- Easy Fixes for Discounts:
- Deadbolt Locks: Installing sturdy deadbolt locks on all exterior doors is a basic security step that many insurers recognize.
- Smoke Detectors: Having working smoke alarms and fire extinguishers can also earn you a small discount.
- Security Systems: Even a simple, unmonitored alarm system that makes a loud noise can deter burglars and lower your rate.
- Bigger Savings: For an even larger discount, consider a centrally monitored system. This is a system that automatically alerts the police or fire department during an emergency.
- Actionable Tip: Make a list of every safety feature in your home—from fire alarms to security cameras—and share it with your insurance agent. Don’t assume they already know!
Trick 3: Raise Your Deductible (If You Can)
This is a powerful way to lower your regular bill, but it requires some thought. Your deductible is the amount of money you agree to pay out of your own pocket before the insurance company starts paying on a claim.
When you buy a policy, you choose your deductible amount. A common deductible is $1,000.
- The Trade-Off: If you raise your deductible from $1,000 to $2,000, your monthly or yearly premium will go down. This is because you are taking on more financial risk yourself, so the insurance company charges you less for coverage.
- Think of it like this: Imagine your health insurance. A plan with a lower copay for doctor visits usually has a higher monthly premium. A plan with a higher copay costs less per month. It’s the same idea.
- Important Warning: Only choose a higher deductible if you have that amount saved in an emergency fund. If a storm damages your roof and the repair is $10,000, you must be able to pay your $2,000 deductible before your insurance covers the remaining $8,000.
Trick 4: Don’t Sweat the Small Stuff
It can be tempting to file a claim for every little thing that goes wrong. However, using your insurance for small repairs can cost you more in the long run. Filing claims, especially multiple small ones, can cause your premium to increase at renewal time.
- The Rule of Thumb: If a repair costs only a little more than your deductible, it’s often smarter to pay for it yourself. Save your insurance for the big, expensive disasters that you can’t handle on your own.
- For Example: Let’s say a window breaks, and the repair costs $1,200. If your deductible is $1,000, the insurance company would only pay you $200. It might not be worth filing a claim for that amount, as it could lead to a rate hike that costs you more than $200 over the next few years.
Trick 5: Review Your Policy Every Year
Your life isn’t static, and your insurance policy shouldn’t be either. Things change, and those changes can lead to new discounts. Set a reminder to call your agent once a year for a quick policy review.
Here are some things that could lower your rate:
- You paid off your mortgage: Some companies offer a discount to homeowners who own their property outright.
- You installed a new roof: A new roof, especially one made with storm-resistant materials, reduces the risk of expensive damage.
- You quit smoking: Since smoking is a fire hazard, being in a smoke-free household can sometimes lead to a discount.
- Your insurance score improved: This score, similar to a credit score, helps insurers predict your likelihood of filing a claim. Paying bills on time can improve it.
- Actionable Tip: When you call your agent for your annual review, ask them directly: “Are there any new discounts I might qualify for?”
Trick 6: Upgrade Your Home’s Old Systems
If you live in one of North Carolina’s many beautiful older homes, your plumbing, electrical, or heating systems might be outdated. Old systems can increase the risk of fire or water damage, which makes insurance companies nervous.
Upgrading these systems not only makes your home safer but can also lead to a lower premium.
- What to Upgrade:
- Electrical Wiring: Replacing old knob-and-tube or aluminum wiring reduces fire risk.
- Plumbing: Updating old pipes can prevent leaks and major water damage.
- Roof: As mentioned before, a new, strong roof is one of the best upgrades you can make.
- Actionable Tip: Before you start a major renovation, call your agent. Ask if the planned upgrades, like replacing old wiring, will qualify you for an insurance discount.
Trick 7: Loyalty Can Pay Off
Some insurance companies value long-term customers. They may offer a loyalty discount to policyholders who stay with them for several years. This is their way of saying “thank you” for your business.
- Pro Tip: Even if you’re thinking of switching insurers, your loyalty can still help. When getting a quote from a new company, ask if they offer a discount to customers who were with their previous insurer for a long time without any gaps in coverage.
Your North Carolina Insurance Dictionary (Jargon, Decoded!)
You’re Ready to Save Money
Understanding how to save on home insurance doesn’t have to be complicated. By using these seven tricks—from bundling policies to making simple home upgrades—you can take control of your costs. You now have the knowledge to ask the right questions and find savings you didn’t know were there.
If you’re a North Carolina resident ready to put these tips into action, we’re here to help. At Robinson & Stith, we’ve been helping families across NC navigate insurance for over 60 years. We pride ourselves on being more than just agents; we’re your neighbors and advisors. We’ll take the time to review your unique situation, find every discount you deserve, and explain your coverage in plain English. Contact us today for a free, no-pressure chat to see how we can protect your home and your wallet.