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9 Ways To Save Money On Homeowners Insurance
1. Stay with the same insurance company:
If you remain with the same insurance company for several years, you
may be able to receive a special discount for being a long-term
policyholder. Some insurers will discount premiums by 5% if
you've been with them for three to five years and buy as much as 10% if
you've been a policyholder for six years or more.
2. Use one company for different types of insurance:
If you use the same company for more than one type of insurance you may
be eligible for a discount. For example if you use one company
for homeowners insurance, health insurance, and car insurance you may
be able to get a reduced price for all three.
3. Shop around:
This may sound contrary to tips # 1 and 2 but one of the easiest ways
to save money on your homeowners insurance is to simply shop around to
look for the best deal. If your current insurance provider isn't
giving you the best rate there's no reason to stay with them. If you
get quotes from multiple insurance providers and find a company that
offers the same or better coverage for less money than you are
currently paying, then by all means switch companies.
There are many websites where you can get instant quotes online by
filling out a simple form with some of your information. You can
also make some phone calls and talk to insurance agents or check
consumer guides to find companies which might provide a better bargain.
4. Raise your deductibles:
The deductible is the amount of money that you are required to pay
toward a loss before your insurance company starts to pay for a
claim. Many insurance companies have a deductible of $500.
If you were to raise your deductible to $1000 you could save as much as
25% on your monthly premiums.
5. Monitor your credit report:
More and more insurance companies these days are using credit
information to set the price of a homeowners insurance policy.
Anything you can do to improve your credit score could help you save
money on your homeowners insurance.
6. Quit smoking:
It may sound strange but non-smokers can generally pay less for
homeowners insurance than smokers. The reason for this is because
a large percentage of house fires are caused by cigarettes. If
you are a non-smoker there is less of a risk of your house being
damaged or destroyed by fire thus, you may be eligible for a discount
on your premiums.
7. Install a home security system:
Installing a home security system may also make you eligible for a
discount on your homeowners insurance premiums. Houses with
security alarms are far less likely to be burglarized. Since your
insurance company would pay for any damage caused by a person breaking
into your house as well as replacing any personal property that was
stolen, the fact that a security alarm reduces the chance of this
happening may make you eligible for a discount with your insurance
provider.
8. Ask for additional discounts:
Another way to save money on homeowners insurance is to simply ask
about any possible discounts. There may be discounts that you are
eligible for that you don't even know about. By simply calling
your insurance agent and asking about any possible discounts you may be
able to get a reduced rate.
9. Review your policy:
You should review your insurance policy once per year. If you
review your policy and learn that you have more coverage than you need,
you can reduce your coverage and pay lower premiums. On the other
hand, after reviewing your policy you may decide that you need more
coverage. If this is the case your premiums would increase but
you would be protected in the future if you ever needed to make a
claim.
For example if you were to build an addition to your house you may want
to actually increase the amount of coverage that you have because if
your house were to burn to the ground in the event of a fire you would
want to make sure that your policy would pay to repair or rebuild your
house. If you made a major addition and did not upgrade your
policy your insurance may not cover the "new" value of your house.
Hopefully these tips offered you some food for thought. You
should always talk to a competent professional regarding any major
financial decisions but the tips in this article give you some good
ammunition so that you are prepared for that conversation.