How do you reduce your home insurance premium?

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For the past five years, I’ve had my house insured by the same provider. My insurance rate was increased by $300 last month when I received my renewal notice. How can I lower my home insurance premium?

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First of all, there must be a reason for an increase in your premium. Possible reasons are:

1. You filed a few claims. The more you ask your insurer to pay out, the more risk you pose, and the more likely they will increase your premium.
2. Other policyholders filed too many claims. If local policyholders filed too many claims – for example, due to a weather event – your insurer can increase the insurance cost for all policyholders.
3. Inflation and rising construction costs. Not only has inflation skyrocketed in 2022, but construction prices have also increased, making it more expensive to rebuild a home. 
4. You updated your home, increasing the replacement cost. 

There are several ways you can reduce your home insurance premium:

1. Change your insurer.
2. Bundle your auto and home insurance policies.
3. Raise your deductible (note that you will have to pay more out of pocket upon a claim).
4. Install home security devices on your property.
5. Look for home insurance discounts.