10 Tips To Save Money On Homeowners Insurance

Posted by Vladmir Garvin on June-29-2012 under Save Money on Home

Here are 10 tips to save money on Homeowners Insurance. The cost of homeowners insurance can be expensive and usually vary according to the insurance company where you have obtained your homeowners policy. There are methods you can practice when looking for a homeowner insurance that can help you reduce the cost of the insurance but still get your home fully covered. Here are ten things to consider.

  1. Lookout for discounts: Different insurance companies offer different discounts and in different states. Lookout for companies with the best discounts and buy your insurance policy from them. For instance, there are companies that offer discounts according to age arguing that older or retired people spend most of their time at home and are therefore not prone to disasters and are able to manage their homes well. Look for discounts that best suits you and you will always save money on your homeowners insurance.
  2. Shop around: This is a method that will probably take you some time but is very helpful in identifying insurance companies with best policies. Research online, in consumer guides, from insurance agents and even in yellow pages. You will be able to identify good homeowners’ insurance companies which are less expensive and can help you save more money.
  3. Increase the amount you pay as deductible: This is the money you are supposed to pay towards a loss before your company starts paying claims in relation to the terms of your homeowners’ insurance policy. Increasing your deductible will enable you save more money on your premiums. Raising your deductible will enable you save up to 40% off depending on the amount you have increased. Different insurance companies also charge different deductibles according to the area where you live and the disaster prone to your that area.
  4. Consider buying most of your insurance policies from the same insurer: You can start buying both your auto and home insurance policies from the same insurance company. Many insurance companies that sell liability, auto and even home coverage will always award discounts of up to 20% on your premium if you buy more than one policies from them. Bundle your insurance policies together and you will be eligible to these discounts and save more on your homeowners insurance as well as other insurance policies.
  5. Improve the security of your home: Many insurance companies offering homeowners coverage will always award you discounts of up to 15% off your premium or more if you install certain security gadgets in your home. Ask your insurance company what gadgets they offer discount if installed and install them. You can install fire alarms, burglar alarms among others. This will help you save money on your homeowners insurance.
  6. Consider buying your homeowners insurance coverage from same company for longer periods: There are insurance companies that offer special discounts of up to 15% for their long-term policy holders. Stay with the same insurer for several years and you might qualify for such premium reductions. You may also ask your insurance company if they award such special discounts. This will help you stay with the best insurance company and enjoy their discounts. You will therefore spend less on your homeowners insurance.
  7. Be careful to insure your house and not your land: When buying insurance policies for your home, be careful not to include your land in it. It is your home at risk and not your land. Including the land will make you pay more premiums thus cost you a higher amount of money.
  8. Avoid smoking habits: It is known that smoking accounts for many residential fires per year of up to 25,000 residential fires. Stop smoking because there are some insurance companies that offer discounts off premiums if people living in a certain area or home do not smoke. You can save yourself a lot of money and even improve your health as well. This is a good tip to consider when planning to reduce the premium you pay for your homeowners insurance.
  9. Consider buying your homeowners’ insurance policy from a private company: Private insurance companies always compete with each other and this has resulted in them being cheaper than government insurance companies. If you live in areas prone to certain natural disasters, you can consider getting a private insurance as it will cost you less. Also, check out our post on tips to reduce Insurance premium.
  10. When buying a home, consider how much its insurance will cost: Insurance companies always reduce some amounts off your premiums according to the type and state of your home. Some consider new homes over old ones, electrical wiring or even location. Make inquiries on the homes which are accorded best discounts before you purchase your new home. You can end up with a home whose insurance will be reduced by up to 20% off your premium. This reduction will obviously enable you save money on homeowners insurance.

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