How to Lower Your Home Insurance Costs in 2021

How to Lower Your Home Insurance Costs in 2021

February 16, 2021

The trick to having the best offer on insurance to cover your home is to be a responsible homeowner. Your insurance rates will drop dramatically by reducing risks and working with your insurance provider to get all the incentives and deductions available to you.

Know If You're Paying Too Much

So many of us view purchasing coverage as a set-it-and-forget-it proposal for our homes and personal property, signing off with a little review on our annual renewals. Considering the scale of standard policies and the difficulty of comparing similar policies from different insurers is not shocking.

Inflation Guard

The inflation guard is an add-on policy that rises annually to adjust for positive improvements in the economy. The rate of increase usually keeps up with the quality of inflation, but not always.

To ensure that the coverage provided by your inflation guard is sufficient for your home, it is worth checking in with your broker regularly. You will usually see an auto-increase in your coverage of between 2% and 5% annually.

Higher Deductible

The lower the deductible on your insurance policy, the higher the insurance rate. A tried and tested way of saving money for all forms of approaches, including home insurance, increases the policy deductible.

You could save $500 or more on annual premiums by raising the deductible from $1,000 per claim to $5,000. Ask for quotes based on various deductibles; consider what you might cover in an emergency and how many smaller claims you can go for with a higher deductible.

Consolidation of Insurance Policies

Bear in mind that several forms of coverage and various unique insurance needs would apply to each customer. There may be many reasons for considering a single carrier to consolidate your different policies. Consolidation of insurance policies can save you big money if you pick the right company and the right coverage for your insurance.


Home insurance is an essential homeownership expenditure. However, that doesn't mean that you have to pay more for it than you need to. Luckily, while still ensuring that you have protection against natural calamities and robbery, there are many ways you can save funds on your home insurance premium.

At Old Bay Insurance Agency, we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (410) 777-5390 or Click Here to request a free quote.