Shop Around
One of the best ways to save money on homeowner’s insurance is to shop around for the best price you can get. Don’t simply settle for the first price you’re quoted; instead, you should take your time and compare home insurance quotes from various insurance companies, both online and the more traditional brick and mortar businesses.
Raise Deductibles
A time-honored method of reducing insurance costs is to raise your deductibles. It’s a standard practice within the insurance industry to lower the price of your premiums if you increase your deductibles. Keep in mind that you will be required to pay the deductibles before your insurance company will release a check to you if you ever have to file a claim. Many people who carry high deductibles place the money they save on premiums into a savings account dedicated for emergency use only.
Don’t Over Insure
Reevaluate your insurance coverage on a regular basis so you can be sure you’re properly insured. It’s not a good idea to be underinsured, but it’s also detrimental to be over insured. Carrying too much insurance will mean you’re paying too much for your coverage. If your property is worth $200,000 but you’re insured for $500,000, your premiums will be way more than they should be.
Combine Policies
A good way to save money on home insurance is to combine your auto, home, health, and life insurance policies into one bundle through the same company. Insurance companies are able to offer reduced payments if you do all your insurance business with them.
Disaster-Proof Your Home
Installing storm-proof shutters on doors and windows will reduce your insurance premiums, as will the installation of storm-resistant shingles on your roof. If you live in a flood plain, you can lower your insurance payments by putting weather sealant on your basement walls. This won’t prevent damage if the water gets too high, but it will reduce the likelihood of numerous minor claims, thereby reducing your insurance costs.
Improve Security
If you put deadbolt locks on your windows and doors, your insurance payments will go down because thieves will find it harder to break in. If you add a security alarm, it will also reduce your payments, especially if it rings into a manned police station or security company. Installing motion detectors or solar-powered lights along walkways will reduce your liability, and thus reduce your insurance payments.
Ask About Discounts
If you meet certain qualifications, you could be entitled to discounts which will reduce your insurance payments. Some organizations and businesses are able to offer their members or employees discounts because they take out multiple policies with insurance companies. There may be other discounts available, so you should ask your insurance agent if you’re eligible or what it would take for you to qualify.
Maintain Good Credit
Among the most important things you can do if you hope to reduce your home insurance premiums is to maintain a good credit rating. The higher your credit score, the better chance you’ll have of paying lower insurance premiums. If you maintain a good credit rating for an extended period of time, your premiums will continue to go down.
Stay with the Same Company
Another way to lower your homeowner’s insurance payments is to stay with the same company for a long time. The more time you do business with that company the more likely they are to reduce your premiums. Insurance companies generally reward your loyalty with lower payments.
Consider Location
Before you buy a home, you may want to take its location into consideration. Insurance companies offer lower rates to homeowners that reside within a certain distance of a fire station, especially if it’s manned around the clock. The reason is that the closer your home is to a fire station, the shorter the response time and the more likely it would be to be saved if a fire breaks out.