Buying a home is a big milestone. But once the celebration ends, the harsh reality sets in – you need homeowners insurance, and it’s expensive!

As a new homeowner struggling with high insurance rates, I desperately needed to cut costs. After tons of research, I discovered one surprisingly simple trick that sliced my premiums literally overnight.

If you want to slash your homeowners insurance payments fast, this one tip can dramatically reduce what you pay while still keeping your home protected. Keep reading and I’ll reveal exactly what you need to do.

Why Homeowners Insurance Is So Pricey

Before we get to the money-saving trick, it’s helpful to understand why homeowners insurance comes with such a hefty price tag.

Rates are high because:

• Insurance covers very expensive assets – your home and belongings.
• Large claims payouts are common from storms, fires, water damage, etc.
• Higher risks in certain areas lead to astronomical premiums.
• You’re responsible for liability claims if someone gets injured on your property.

Basically, it’s incredibly costly for insurance companies to take on the risk for your home. And those costs get passed right along to you in the form of sky-high premiums.

But there are ways to slash what you pay if you know where to look and what to ask for.

Shopping Around is Vital to Lower Premiums

Before we get to the #1 trick, it’s absolutely essential you shop around for quotes.

Getting homeowners insurance quotes from several different providers is the best way to find
cheap homeowners insurance.

Here are some quick tips for shopping around effectively:

• Get quotes from 5-6 different national and local insurance companies.
• Compare policies for the exact same coverage amounts.
• Look at both big name (State Farm, Allstate) and lesser known insurers.
• Use an independent insurance agent to access multiple carrier quotes.
• Check rates from online insurance companies like Lemonade and Hippo.

Casting a wide net ensures you find the most competitive rates. Now let’s talk about how to drop them even further.

The #1 Trick to Slash Rates Overnight

Ready for the #1 hack to instantly reduce what you pay for homeowners insurance?

Raise your deductible!

That’s it. It’s simple but extremely effective.

Your deductible is what you pay out-of-pocket on a claim before the insurance coverage kicks in. Standard deductibles are around $500-$1000.

But you can often reduce your monthly premiums by 20-30% or more just by raising your deductible to $2500 or even $5000.

The higher the deductible, the lower the premium. Of course, you take on more upfront risk. So make sure you have enough savings set aside in case you need to pay the deductible for a major claim.

But if you want immediate and substantial premium relief, increasing your deductible is the #1 way to make it happen almost overnight.

Other Ways to Claim Discounts on Home Insurance

Along with adjusting your deductible, it pays to ask about any other discounts you may qualify for:

• New home discount – for newly constructed homes with modern features.
• Security system discount – for a professionally monitored system.
• Safety feature discounts – for smoke detectors, fire-safe roofs, etc.
• Bundling discount – for combining home and auto insurance.
• Good credit discount – insurers often reward better credit with reduced rates.
• Group affiliation discounts – for alumni groups, associations, etc you’re a member of.
• Claim-free discount – for going years without filing any claims.

The more discounts you can stack together, the more you save! Don’t be shy to inquire about any ways to reduce your premium.

When to File Claims Selectively

Speaking of filing claims, be very selective about the claims you actually submit to avoid increased rates down the road.

Some guidelines include:

• Only file claims that exceed your deductible amount.
• Consider paying smaller repair costs yourself instead of claiming.
• Thoroughly research if the damage is covered before submitting a claim.
• Take preventative measures so damage incidents don’t recur.

Being strategic with claims keeps premium hikes at bay while still using your policy when truly needed.

Review Coverage Limits and Exclusions

Finally, go through your policy with a fine tooth comb to confirm you have adequate coverage limits and understand all exclusions.

Some key coverage amounts to review:

• Dwelling coverage – Enough to fully rebuild home.
• Loss of use – Covers housing costs if home is uninhabitable.
• Personal liability – At least $300K or more recommended.
• Personal property – Sufficient to replace all possessions.

And know the most common exclusions:

• Flood damage
• Earthquake damage
• Certain dog breeds
• Damage from operating a business at home

Amend your policy anywhere you see gaps in order to be fully protected.

Use This Trick to Slash Home Insurance Payments

Finding affordable homeowners insurance can seem impossible, but doesn’t have to be! Follow my tips to shop multiple insurers, increase deductibles, claim discounts, review coverages carefully, and be smart with filing claims.

But above all, leverage the #1 trick of raising your deductible to easily shave hundreds off your premium almost instantly. Use this hack to finally get some relief from oppressive homeowners insurance rates.