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Edited by John Leach
Updated September 13, 2022
Reading time: 7 minutes
You’re trying to make ends meet for your family, and when it comes to finding the best home insurance, you’re at a loss. The reality is that many low-income families struggle to put food on the table while paying for necessary costs like homeowners insurance. Is quality, affordable home insurance possible for families? Yes, and you don’t have to compromise on low-income home insurance for you and your family.
Home insurance is necessary to protect the largest investment of your lifetime. Homeowners insurance is protection against damages as a result of weather, theft, and vandalism. You’ll also need personal liability for injuries that could occur in your home. But when you’re trying to make ends meet, finding the best and cheapest home insurance is not an easy task.
Finding the Best and Cheapest Homeowners Insurance for Low-Income Families
It’s an accomplishment to buy a large investment like a home. But you have to protect that investment and your personal property with a good home insurance policy. Homeowners insurance protects you and your family from the unknown like natural disasters, fire, theft, and other disasters. Though not legally required by most states, your home lender will most likely need you to have insurance coverage on your home to approve your loan. Some landlords or rental companies also require renters insurance, which generally has lower insurance rates than home insurance.
Going in, knowing your coverage options and what you can afford on a deductible will save you loads of time. And since rates differ depending on the type of insurance, what area you live in, and special discounts available for things like burglar alarms, you could find ways to save on insurance premiums without even knowing.
It’s also great to know which companies offer the best discounts. All insurance companies differ from one another, so it’s important to compare your needs with what the companies offer. Thankfully, Insurify is there to help you compare and save when you’re ready. In just a few minutes, you can fill out a few questions and get quotes delivered to you in seconds.
Follow along as we help you find the best home insurance for low-income families.
Coverage Options for Low-Income Home Insurance
Before you buy a policy, it’s important to know your coverage limits and deductible so you know how much you can afford. You may also need additional coverage options, such as flood insurance, depending on the risk levels of your area. Expensive policies tend to have better coverage at a lower deductible. But don’t worry, there are affordable coverage options available for you and your budget.
There are coverage options for everyone around every corner. These tips and tricks could help you save thousands on insurance products:
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Deductible and Comprehensive Insurance Costs
Insurance rates are confusing to many, but knowing the tricks of the trade could put you on your way to savings. For instance, if you raise your deductible (the amount of money you would pay toward a loss before your insurance company pays out a claim), you can save more money on your premiums.
Many insurance companies recommend at least $500 on your deductible. Though, if you raise yours to $1,000, you could potentially save up to 25 percent on premiums. Keep in mind that certain disaster-prone areas come with separate deductibles for specific damages, such as wind storms or earthquakes. But there are ways to get significant discounts, like getting impact-resistant roofing or storm shutters.
Also, think about comprehensive coverage and what you will get from your insurance program. Comprehensive coverage normally covers damage from vandalism, fire, and falling objects like hail. There are, of course, special exclusions with any insurance policy. So make sure you check what is covered before buying your homeowners insurance policy.
Certain prone areas come with an added cost to home insurance. For example, if you live in a high-crime area or a high-risk flood zone, your insurance company will raise premiums. Premiums vary from ZIP code to ZIP code, which takes into account many different variables. It’s important to know what area you live in and how that could affect your premiums.
In many prone areas, the more resistant your home is to natural disasters, the more savings you will have on your insurance policy. For example, you could make your home more resistant to hail and wind storms. You could add storm shutters or reinforce roofing with stronger roofing materials, specifically if your area is prone to hurricanes. Retrofitting your older home may be a great way to withstand earthquakes. Additionally, reduce the risk of fire and water damage by modernizing your electrical, heating, and plumbing. Talk to your local insurance agent about changes that could impact your savings.
Your policy should cover any major replacement costs of your home, your purchases, and any additions to your home. Remember that the land your home is on isn’t at risk for any perils covered in your home insurance policy. You do not have to factor in your land value when deciding how much insurance you need to buy. Doing so will result in higher premiums.
It’s also unnecessary to spend money on coverage you don’t actually need. You may have a floater (extra insurance for items not fully covered on your homeowners policy). It’s recommended by the Insurance Information Institute that you cancel or reduce your floater amount if your items are no longer worth the price you originally paid for them.
It’s illegal in most states to refuse coverage because of a low credit score. Though, as a guideline, it’s best to keep your credit cards paid off and only utilize up to 30 percent of your available credit. If you have a high credit score, you could end up with an insurance discount, which would significantly help with annual savings.
If you have a homeowners insurance policy, your previous claims could lead to higher insurance rates and rate hikes in the future. So, as a guideline, it’s crucial to ask yourself if the claim is worth an annual rate increase or if it could be easily solved without an insurance payout.
Multi-policy discounts are pretty straightforward; you bundle your insurance policies with the same carrier. Did you know that there are multi-policy discounts available for home insurance when you add another insurance like auto insurance? Look for insurance carriers that offer bundling, as many do.
Additional Insurance Discounts
Policyholders could be eligible for additional insurance discounts for a variety of reasons. First, most property insurance carriers offer discounts for having home security and smoke detectors. Home security systems and fire alarms lessen the opportunity for theft and fires. These things save the insurance company (and you) money by not having to file an insurance claim. Some insurance companies also offer non-smoker discounts to reduce the risk of fires. Being married can also save you a buck or two.
Additionally, many insurance companies are offering temporary discounts for those impacted by COVID-19. Check with the insurance carrier to see what kinds of temporary discounts or payment options are available if the pandemic has impacted you and your family. Ask your local insurance agent about special homeowners insurance rates for these special instances.
Best Homeowners Insurance Companies at Affordable Rates
Though it may seem overwhelming, in reality there are a variety of affordable insurance carriers available. Some of the best insurance companies that come to mind for cheap home insurance include the following:
Though one of the largest, this insurance company does a lot for its customers. Allstate is known for insuring its customers with discounts, leading to affordable rates. On top of discounts for things like burglar alarms, smoke detectors, and bundling, you could receive a discount for being retired from age 55 and up. Customers turn to Allstate for the abundant discounts available. You won’t know whether you qualify until you ask your local agent.
Owned by its policyholders, making it a mutual insurance company, Amica is not out to make a profit. Its core culture is putting customers first to provide insurance products for their needs. Amica earns trust by fostering long-term relationships with its policyholders, which means it can find you lower rates on policies. Amica is J.D. Power rated, a high honor in customer satisfaction.
Many people choose Nationwide for its long history of providing insurance products. But what keeps customers coming back is its ability to help customize affordable home insurance quotes. Insurance agents will ask you questions about structure details and educate you so they can help you come up with the best-customized homeowners insurance rate.
USAA is another J.D. Power–rated insurance company with a history of customer excellence. To qualify for its insurance policies, you must be a member of the military, a military veteran, or a military family member, as most of their discounts and offers are military-specific. If you qualify, you could get significant savings from USAA.
Comparing Insurance Carriers
With so many types of insurance and insurers, there is a policy for everyone. And although there is a long list of excellent insurance companies available, this list should be a starting point in your research for the best home insurance companies to fit your needs.
The next thing you need to do is compare insurance carriers. Thankfully, you have Insurify to provide you with the tools needed to compare insurance quotes in an instant. No need to spend all day comparing. Check out Insurify’s comparison feature now.
Frequently Asked Questions - Home Insurance for Low-Income Families
Insurance discounts with car insurance and home insurance are available. Bundling, also known as multi-policy, is a great way to save significantly on your insurance plans. In fact, many insurance carriers offer bundling first thing when you get to their website to buy, so there’s not much work involved.
It’s recommended that you get flood insurance, as flooding is not included in the standard comprehensive coverage. Flood insurance can save you more in the long run, even if you do not live in a flood zone. Check out the National Flood Insurance Program for more information on adding flood insurance.
Rates from USAA vary from ZIP code to ZIP code and from state to state. But in some instances, USAA may be the cheapest option for you and your family. If you are a military member, a veteran, or a family member of the military and qualify, you could get personalized military-specific discounts.
Financial strength is the rating that tells customers how likely an insurance company will be to pay its claims. Check with A.M. Best, Fitch, Kroll Bond Rating Agency (KBRA), Moody’s, or Standard & Poor’s websites, all independent agencies, for financial ratings.
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Data scientists at Insurify analyzed over 40 million auto insurance rates across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. With these insights, Insurify is able to offer drivers insight into how their car insurance premiums are priced by companies.