How to Manage Rising Home Insurance Costs on a Single Income

If you rely on a single source of income and wondering how to save on ever-rising home insurance costs, you’ve just landed at the right spot. You will agree with many homeowners that home insurance is not a luxury; it’s a necessity to protect your home and possessions against damage and theft.

As you probably know, mortgage lenders stipulate borrowers to have a homeowner’s insurance policy, without which they are more likely to decline to finance a residential property transaction. Some landlords also require tenants to have renter’s insurance.

Let’s take a look at some valuable tips to manage costly home insurance with a single income.

  • Compare Several Options

Why rush into buying a particular home insurance policy when you can shop around for more affordable options? You should be willing to spend some time asking your friends for recommendations, scouring the internet, or seeking information from your state’s insurance department. Don’t forget consumer guides and insurance agents. These are helpful resources that will give you an idea about the prices of different insurance companies.

However, be cautious when seeking affordable options. You should look for a well-reputed company that will meet your insurance needs at a cost that’s favorable to your income. You should also find out how the insurance company responds to claims to avoid frustrations in the future.

  • Reduce The Risks

Like any insurance policy, the more the risks, the higher the premiums you pay. It, therefore, becomes clear that reducing your home’s risks goes a step further to save on insurance premiums.

Installing a security system, including a burglar alarm and smoke detector can earn you at least a 5% discount on your premium.  offers up to 20% discount for homes featuring sophisticated security systems such as automatic water sprinklers and those with monitoring services.

Consider upgrading your heating and plumbing systems to reduce the risk of hazard besides implementing measures to protect your home from natural disasters. Whereas these improvements require a significant initial investment, they will bring in incredible savings in the long run.

  • Take Advantage of Multiple Policies

Did you know that some insurance companies take a certain percentage off premiums when their customers purchase multiple policies? Maybe you don’t, but that’s how it is. Motor vehicle coverage and home insurance would be an ideal combination to save on your premiums. Insurance companies want you to buy more policies and will give you deals to make that happen. Even as you take advantage of these offers, be sure that the cost of the combination is less than the price buying the two insurance policies from different companies. That’s why you should take some time comparing options.

  • A Good Credit Score Helps

This could be surprising news to you, but, indeed, insurance companies are now considering credit information when determining policy premiums. It, therefore, goes without saying that maintaining a superior credit score can aid in reducing home insurance costs.

A low credit score of below 650 on the FICO scale can lead to premiums risings by as much as 90%. Keep your credit balances as low as possible, pay your bills on time, and keep away from more credit than you need to protect your credit history. Check your credit information regularly and be quick to correct any erroneous data.

  • Raise Your Deductible

Deductible refers to the amount of money you pay for the loss before an insurance company pays your claim. The amount varies depending on the terms of different policies. The lower the deductible, the higher the premiums and the vice versa.

A deductible of at least $500 is usually recommended, but you can save as much as 25% when you raise the amount to $1000. Note that your policy may have a separate deductible for certain damages if you live in a disaster-prone area.


There are several financial concerns associated with relying on a single source of income, including payment of home insurance premiums, which are now on the rise. Nevertheless, informed homeowners find it easy to manage the costs of insurance, and that’s why you should implement the tips outlined above. With these measures, be sure to protect your home from risks comfortably with affordable premiums.