Homeowner’s insurance is one of those things that you just can’t skip. Even if you’re a devotee of extreme frugality, this is something that is too important to put on your chopping block when you’re looking for ways to cut expenses. Though you’re not legally required to purchase a policy, approximately zero lenders will allow you to bail on homeowners insurance if you still owe them money on your house. They want to protect their investment from going up in both literal and figurative flames, so if you’re paying off your house, insurance is a non-negotiable.
That doesn’t mean that you have to saw off one your arms to pay for it, though. There are plenty of ways to cut costs on your insurance policy while still covering yourself in the event of a calamity. For reference, I’m going to use my own house and insurance policy as a model to talk you through the potential savings of each one of these tips. I live in a three-bedroom, 2,200-square foot house in New England that’s over 100 years old. Your mileage will definitely vary, but you should still be able to cut your costs using any or all of these tips.
1. Shop Around
Seriously, you can’t get good deals if you’re not willing to put in the legwork. Frugality is hard work, but the internet makes it a whole lot easier. Take the time to request a quote from several insurers. The big guys are easy to find because they spend a lot of money on advertising to make sure you remember their names, but it’s worth checking your state’s list of licensed insurers to check out the ones you may not have heard of.
You can either request quotes online by filling out a bunch of forms, or you can talk to a local insurance broker who will do that legwork for you. It’s best to talk to an independent insurance agent rather than a representative of a particular company so you can cast a wide net with the quotes.