While home insurance is undeniably necessary (and mandatory for anyone with a mortgage), shopping for insurance can be a headache. But you don’t have to!
Lemonade homeowners insurance makes the buying process a breeze, so you can get wall-to-wall coverage for your home without tearing your hair out — or breaking the bank.
The average cost of homeowners insurance in the US is about $152 per month, or about $1,820 per year; and at Lemonade, homeowners policies start as low as $25 a month. However, the price of your policy will depend on many factors – including the value, condition and quality of your home’s construction, as well as your insurance history, previous claims and more.
Let’s dive into how to get the best coverage for your home with a premium that fits your budget.
Let’s look at some of the steps you can take to lower your rates, as well as some of the factors that affect your rates.
Compare Offers
Whether you’re a first-time home buyer or a seasoned homeowner, it’s always a good idea to keep your options open by comparing home insurance quotes. You don’t want to immediately commit to the first provider you get a quote from or continue with a provider that is too expensive.
Here are some general tips to help you find the best and most affordable homeowners insurance for your needs:
Check policy details: When comparing quotes and rates, make sure you compare policy details before making a decision. This includes deductibles, add-ons and policy limits.
Look at the company’s claims handling: How will your homeowners insurance company handle your claim if the worst really happens? To what extent does their complaints process prioritize customer satisfaction?
Don’t forget the add-ons: Who does your policy need to cover? FYI, with Lemonade, your family automatically refers to your family. In effect, everyone in your household who is related to you by blood, marriage or adoption is covered. You also have the option to add a non-legal partner as additional insurance for a small fee.
While home insurance is undeniably necessary (and mandatory for anyone with a mortgage), shopping for insurance can be a headache. But you don’t have to!
Lemonade homeowners insurance makes the buying process a breeze, so you can get wall-to-wall coverage for your home without tearing your hair out — or breaking the bank.
The average cost of homeowners insurance in the US is about $152 per month, or about $1,820 per year; and at Lemonade, homeowners policies start as low as $25 a month. However, the price of your policy will depend on many factors – including the value, condition and quality of your home’s construction, as well as your insurance history, previous claims and more.
Let’s dive into how to get the best coverage for your home with a premium that fits your budget.
Let’s look at some of the steps you can take to lower your rates, as well as some of the factors that affect your rates.
Increase Your Deductible
Switching to a higher deductible is a simple and straightforward way to get a cheaper policy. For example, increasing it from $1,000 to $2,500 could mean big monthly savings. Just make sure you’re willing to pay more out of pocket if you have to file a claim.
Look for Discounts
While you won’t find any Black Friday-style deals on homeowners insurance (which must be priced on a state-by-state basis), there are still a few ways to be a smart shopper.
One easy way to lower your insurance premiums is to install more protection devices. If you have a home security system, smoke detectors, fire extinguishers, sprinklers, barriers, wind protection, water or temperature alerts or a central alarm reporting station, you may qualify for an insurance discount.
You can also see what other discounts your provider may offer. Lemonade has its own “Get Discounts Now” feature where you can help lower your premiums by answering a series of questions about your home’s features and safety measures, such as home renovations or whether you live in a gated community.
Insurance Package
Bundling different policies together can unlock savings and discounts – for example, you can combine homeowners and auto insurance or homeowners and pet insurance.
And with Lemonade, pooling also eliminates the hassle by allowing you to handle all your claims in one place. Let’s say your car is broken into and you’re left with a broken window and a few stolen valuables. Since everything is digital, you can file a car window car insurance claim as well as a homeowners claim for your belongings in a single mobile app.
Make Some Home Improvements
Improvements to your home – such as replacing the roof or renovating it with fire-resistant materials such as brick or stone – could also lead to potentially lower rates. Once you’ve made the updates, be sure to tell your insurer to see if you qualify for a discount.
Adjust the Coverage Amount
Like raising your deductible, lowering your overall coverage is another quick and easy way to lower your premiums.
However, before making any drastic cuts, we recommend exercising serious caution – you don’t want to find yourself in a situation where you’re denied coverage for something essential like a costly renovation to your home.
Still, if you’re looking to cut back on your coverage, you might want to consider doing an audit of everything you’re covered to see if you’re still paying for coverage for things you no longer have. For example, if you’ve recently cleaned out and parted with some expensive items, you may want to consider reducing the amount of personal property coverage you have.
If you’re not sure what cover you need, check out our guide to each type of cover.
Understand the Factors That Affect Your Home Insurance Premiums
While you may be doing everything you can to find the cheapest rate, there are still some factors outside of your control that need to be kept in mind when comparing your options. A quote in tornado-prone Kansas will look quite different than an affordable quote in a less disaster-prone state like Utah.
Here are some other factors that affect your rate:
Weather conditions in your state
States with a higher probability of natural disasters tend to have higher insurance premiums. For example: Louisiana, Texas, Florida, Oklahoma and Kansas have the highest premiums for homeowners insurance. It’s no coincidence that Florida, Texas, and Louisiana are the coastal states most vulnerable to frequent and severe storms, while Oklahoma and Kansas are right in the middle of Tornado Alley.
The materials your house is built from
The more likely your home is to collapse in a natural disaster, the more expensive your home insurance will be. This takes into account everything from the material and shape of your roof to the construction of the building and the type of heating in your home.
Loss history in your area
If your neighborhood has a lot of theft, your premium may be higher.
Your claim history
If you’ve made more claims in the past five to seven years, insurers will assume you’re more likely to do so again, which could result in higher premiums. However, your premiums will usually only affect claims that are more than $500 above your deductible.
Your credit history
Statistically, people with lower credit scores file more insurance claims, so your credit score could hurt your insurance premiums as well. Good credit also tells insurers that you’ve been on top of the kinds of payments that help you maintain your home.
Guest obligations
If you have a pool or trampoline, your insurance company may charge you a higher premium. Owning certain dog breeds or a dog with a history of bites could also result in a price increase, as homeowners insurance may include dog bites as part of your personal liability coverage.
Many of these factors can’t be helped, but are still useful to consider when evaluating your options. This way you can get an idea of what “cheap” or affordable insurance means for your situation.
Before you close the deal…
There are many things to consider when purchasing homeowners insurance, but Lemonade Homeowners Insurance simplifies the process of creating a policy that gives you — and your wallet — peace of mind.
Click below to start your free quote.
- Get a quote
- Get a quote
A quick word because we <3 our lawyers: This post is general in nature and no statement in it changes the terms, exclusions, or limitations of the policies issued, which vary by your state of residence. We encourage you to discuss your particular circumstances with your own professional advisors. The purpose of this post is just to give you information and insights that you can use to make such discussions more productive! Any comments or links to third parties naturally represent their own opinions and Lemonade is not responsible for them. Coverage may not be available in all states. Please note that coverage, policy administration, claims processes, refunds, and customer support statements apply to policies underwritten by Lemonade Insurance Company or Metromile Insurance Company, a Lemonade company sold by Lemonade Insurance Agency, LLC. The statements do not apply to contracts concluded by other carriers.
