10 Ways to Save Money on Your Homeowners Insurance

Many times the best way to strike a great deal on your homeowners insurance is by shopping around. Contacting five to eight different insurance companies and comparing rates and policies is an easy way to save money. Sometimes you can even find some better policies for less. Discounts from your insurance company can range from coverage on multiple items such as cars or from the type of building material used to build your home to how close you live to a fire station. Below are 10 ways you can easily save money on your homeowners insurance policy.

1. As we mentioned earlier, shopping around and comparing rate quotes from other insurance companies is the fastest and easiest way to save money. Make sure when you are comparing rates you compare the same coverages, deductibles, etc. We have researched and compared nine of the top insurance companies that offer homeowner’s insurance and you will be able to get a quote online, at your convenience, without leaving your home. Check out our Homeowner Insurance review for more information.
2. One of the most important things to do is check your credit rating. Many premiums are based on your credit score and it is important to make sure your credit is good. If it isn’t, there are some companies that do not run a credit check and it would be a good idea to start with them first.
3. Raising your deductible is another great way to save money. The deductible is the money you will have to pay towards any loss or damage to your home. Most deductibles start at $250 and can go up to $5,000. The amount of savings will vary, but you could easily see a 12% reduction on your premiums just by raising your deductible $250. Make sure that if you decide to raise you deductible, you have the funds to afford that higher deductible should something happen. If you have your vehicles covered with the same insurance company, you may also want to see about raising the deductibles on those policies as well. And again, make sure you are able to afford those higher deductibles in whatever you decide.
4. When you sit down and evaluate your homeowners insurance, make sure you are insuring your home, not the land your home is located on. Your home and all of the contents in it are at risk for fire, theft, or other perils, the land it occupies is not. This will help in deciding how much insurance you will need and keep your premiums at a minimum.
5. Some insurance companies give deep discounts to those homes that have burglar alarms, smoke detectors and other home-security systems in place. These can be purchased at minimal costs and can be a great savings for you when it comes to your homeowners insurance premium.
6. An easy and healthy option to saving on your premiums is to stop smoking. Smoking accidents account for a large number of residential fires and some insurers will offer discounts for a smoke-free home. And trying this option may also help lower your health insurance premiums as well.
7. Loyalty programs are becoming more and more common and some companies are even offering premium discounts of 5% and higher for those that stay with the company for three years and more. The discounts may even get higher the longer you are with the same company.
8. Check your policy annually. This is not only a great way to save money, but an even better way of making sure you have the coverage you need in case things have changed. It’s always good to meet with your insurance agent yearly and finding out if there are other discounts available that you may not be enrolled in.
9. There are companies that are charging $5 and more for mailed payments. If you have the option, automatically withdrawing your premium payment can be a great way to save some money. And it’s convenient and you don’t have to worry about missing a payment.
10. Consider where your home is located and its geographical location. Living in areas that see high flooding, wind, fire, earthquakes or other natural disasters will automatically have higher premiums. Some of this may not be an option for you, so considering the other eight options may be a better way for you to save money.

There are a lot of ways to save money on your premium and several of these don’t require you to move or relocate. For more helpful tips and articles on homeowners insurance, check out our Learning Center.

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