Insuring your new home can seem like a maze of different quotes that appear to be determined arbitrarily at best. While some insurance providers can weigh applications differently, are there some general ways to reduce your premiums?

The short answer is yes! But to give you a bit more to work with, we’ve provided eight ways you can save on your home insurance.

Don’t Over-Insure

Many homeowners will often pay for more insurance than they need, on things they will never be able to make a claim on. Often times, this is because homeowners include the value of the land their home is built on. You're extremely unlikely to ever have to file a claim on the lot your home is built on. Remove this value from your policy and your premiums will come down.

It's also common for some homeowners to have an over-inflated view of what their possessions are worth. Be sure to assess the valuables in your home accurately so you aren’t paying insurance on possessions that aren’t as valuable as you might think.

Increase Your Deductible

The whole reason you need to insure your home is to protect you from the financial burden of paying for damages related to natural disasters, house fires, or theft. Your premiums increase when insurance providers have to take on more risk in order to protect you.

A deductible on an insurance policy is the amount you have to pay before your insurance company will process a claim. You can bring down your premiums by increasing how much you will pay for damages before filing a claim with your provider. They're taking on less risk to protect your home and therefore can charge you less.

Keep in mind that if you increase your deductible, be sure you have the means to pay a larger amount comfortably.

Don’t Pay Monthly

While there are benefits to spacing out your insurance payments over a 12-month period, the same could be said for paying it in one lump sum. When you pay your premiums on a monthly basis, insurance companies will often charge administrative fees on what you owe as well.

When paying your insurance premium on an annual basis, you'll only be charged this administration fee once instead of 12 times.

Increase Safety & Security

Making your home safe and secure will not only protect you and your family from harm, it also has the potential to save you money. Installing a security system and having working smoke and carbon monoxide detectors on every floor of your home will help bring your insurance premiums down. By having these protections in place, the insurance company is taking on less risk in insuring your home.

Find the Best Rates

This likely goes without saying, but never assume all insurance providers will provide the same rates. Never settle on the first rate you see regardless of how inexpensive it may seem. Take the time you’ll need to find the right amount of insurance at a price that works for you.

Be sure to not only compare prices but look for what coverage you’ll receive at that rate. Also, as we’ve written may times in our previous blog posts, always read the fine print.

Choose One Provider

As mentioned above, insurance companies make money in part through administrative fees. While there are differences between home insurance and mortgage insurance, you can save yourself the expense of multiple administration fees by choosing one insurer for all your insurance needs. 

It’s also important to remember that insurance providers often provide preferred rates to those that purchase more than one kind of insurance. This will also come in handy when you need to file an insurance claim on any of your policies; it’s one provider for them all.

Get Discounts

While there aren’t always discounts on insurance rates, you’ll never know if you don’t ask. Depending on how much you're looking to insure your possessions for, some providers may give a discount over a certain amount. If you’ve attended a university or college, you may be able to receive discounted rates through your Alma Mater.

Butt Out

It makes sense that your life insurance premiums will be less expensive if you quit smoking, but the same can be said for your home insurance. This is because house fires can sometimes be attributed cigarette butts accidentally left burning. Do both your wallet and your lungs a favour and take this as an opportunity to quit.

Whether you use all of these tips, or just a few, you can rest assured that any of these will help bring down the cost of your home insurance. Is there a method you've used to lessen the cost of your home insurance? Feel free to share in the comments below.

Photo Credits: piggy bank, smart home security, home lock