Talk With Us

6 Tips for First-Time Homebuyers to Reduce Insurance Costs

10 Aug by 5280 Insurance

In your effort to buy your first home, one thing you must never ignore is homeowner’s insurance. Homeowners insurance is a type of property insurance that covers a private residence. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one’s home, its contents, loss of use of the home, or loss of other valuable possessions within the home.

As you can see, this policy is very important. However, it can be quite pricy. Fortunately, if you’re a first-time homebuyer, one thing you may not realize is that there are many ways to cut down on its cost!

Today, we want to discuss with you a number of tips you can follow to reduce the cost of your homeowner’s insurance as a first-time homebuyer:

1. Don’t Over-Insure Your Home

You only need to insure your home for its replacement value, not its market value. This is because if your home is destroyed, you will need to use the insurance money to rebuild it, and the cost of construction may be different than the current market value of your home.

2. Raise Your Deductible

The higher your deductible, the lower your premium. And, as you might have guessed, the lower your premium, the lower your costs in the long run as less money is being affected by interest rates. So, if you can, raise your deductible.

3. Shop Around

There are a lot of insurance companies out there, and they all have different rates. It’s important to shop around and get quotes from several different companies before you decide which one to use. This way, you can be sure you’re getting the best rate possible for the policy you’ll need.

4. Consider Insurance Discounts

Some companies offer discounts for features like smoke alarms, security systems, and more. You may be able to get a discount on your insurance if you have these features installed in your home. Why is this the case? It’s because the more safe and secure your home is, the less risk is imposed on the insurance provider, allowing them to provide lower interest rates and the like. Be sure to check with your insurer to see if they offer any discounts.

5. Review Your Policy Annually

You should always review your insurance policy annually to make sure you are getting the best rate possible. If not, then you should shop around for a new policy. Remember, rates change, and this also means that there may be new insurance policies out there that can offer far better rates than what yours might have.

6. Bundle Your Home Insurance with Auto Insurance

When you bundle your home insurance with auto insurance, you can save money on both policies. This is because insurers often offer discounts to customers who purchase multiple policies from them. In addition, bundling your policies can make it easier to keep track of your coverage and ensure that you have the right amount of protection for your needs.


As you can see, there are a ton of ways to save on insurance, and these tips can be applied well to the next homes you want to purchase and insure. That said, always be sure to work with a reputable insurance company, as that’s your one-way ticket to not only finding the right policy for your need but one that can satisfy your financial status!

5280 Insurance offers a wide variety of insurance policies, from flood insurance all the way to auto insurance and more. If you are looking for the best home insurance in Colorado, reach out to us today!

Leave a Reply

Your email address will not be published. Required fields are marked *