Your home is most likely your most important financial investment. Aside from your mortgage and ever-increasing property taxes in Connecticut, home insurance can take a toll on your budget. The good news is, there are several ways in which you can lower your homeowners insurance premiums:
1. Good Credit Scores
A study found that having poor credit score can almost double your premiums.¹ Typically, you’ll pay a whopping 91% more than someone with excellent credit. Several states prohibit insurers from factoring in credit scores on home insurance rates. These states include California, Maryland, and Massachusetts. Therefore, here in Connecticut, you need to keep your credit in top shape so you can save money on homeowners insurance.
You should aim for a CBI score of 760 and above, as anything below 600 is considered a poor CBI score as reported by the Insurance Information Institute.
For more information about credit scores and it works with your insurance premiums, please check out our: How Your Credit Score Affects Home Insurance Costs in Connecticut blog!
2. Claim Wisely
Claiming wisely is a great way to lower homeowners insurance premiums. Insurance is among the products you buy that you don’t want to use. Not only will the repairs cause much of a hassle, but insurance claims may cause your rates to increase. Statistically speaking, one home insurance claim will more likely lead to another one. Thus, companies make it a point to adjust your premiums to compensate for your risks.
The type of insurance claim and your address can increase your premiums by an average of 9%. To save money, carefully consider whether filing a claim for a covered event is in your best interest in the long run. File claims only when it’s necessary. For claims which you can afford to pay for, better do repairs on your own.
3. A Property’s Claim History
When buying someone’s home, their home insurance claim history may affect your current rate. Yes, the idea seems wildly unfair as you have no control of this, but insurers look at the home’s claim history as a risk for having more claims in the future. Thus, you are charged according to that fact.
What’s even more shocking is that simply talking to your agent about specific home damages can lead to higher rates. The mere fact that you inquired about may indicate that it happened. Therefore, it makes your property riskier to insure.
So when you speak with your agent, be very clear about whether you’re simply asking about the coverage of your policy, or you’re making a formal claim for damage. Another tip is that when you buy a home, always ask about any insurance claims that the seller made the last seven years.
4. Dog Breeds
You may be surprised to know that your furry friend is among the factors considered when calculating rates, so pick your pooch wisely!
Since a standard home insurance policy includes liability for all household members (including your pets), insurers have become very particular about the dog breeds they insure. That’s because dog bites make up almost one-third of all the liability claims which costs $30,000.
Large breeds may be blacklisted or may cause you to pay for expensive home coverage. However, there are exceptions:
- Doberman Pinscher
- Great Dane
- German Shepherd
- Cane Corso
- Chow Chow
- Alaskan Malamute
- Siberian Husky
- Wolf Hybrids
- Pit Bull or Staffordshire Terrier
If your dog is on this list, you may want to buy an umbrella policy for them. Speak with an agent to see whether umbrella insurance would be a good option for you: 203-481-8898. You can read more about these breeds and how they affect home insurance rates here: 10 Dog Breeds That Drive Up Home Insurance in Connecticut.
5. Discounts & Deductibles
Applying for discounts are among the best way to lower homeowners insurance premiums. A lot of factors influence your home insurance rates, so ask your agent for any discounts that you may qualify for.
Consider increasing deductibles (if you are capable of paying extra when making a claim), as it may help reduce your annual premiums. Although homeowners insurance certainly adds to your expenses, you simply can’t afford to go without it. But that doesn’t mean you shouldn’t pay less.
Questions? We’re here to help!
We hope you found this article helpful. If you need to speak with an agent, please feel free to use the chat feature in the bottom left-hand corner or contact us at 203-481-8898.
Digital Marketing Director