Homeowners Insurance - 7 Simple Steps to Saving Big

The price you pay for homeowners insurance can vary by hundreds of dollars depending on policy options and the provider you choose. In order to find the right policy at the lowest possible price, follow these 7 simple steps:

1. Shop Around for the Best Homeowners Insurance Rate

Comparing homeowners insurance rates from multiple providers is the simplest, easiest way to save money on your policy. An online comparison service such as InsWeb.com makes getting multiple insurance quotes quick and easy.

2. Use the Same Carrier for Your Homeowners and Auto Insurance

Purchasing your homeowners insurance and your car insurance from the same insurance carrier could save you up to 15% on both premiums.

3. Only Buy the Coverage You Need

Homeowners insurance policy limits should be revisited every year to reevaluate any major purchases and additions. On the other hand, many of the possessions that homeowners insure depreciate significantly over the course of a year. Homeowners should update their home inventories and reevaluate policy limits regularly for possible savings.

4. Raise Your Deductible

Increasing your deductible by just a few hundred dollars can make a significant difference in your premium. Most deductibles start at $250; if you can raise your deductible to $1,000, you may save up to 25% on your premium. Remember, raising your deducible means more expense out-of-pocket should an accident happen, but lower premiums.

5. Insure Your Home, Not the Land Under It

Consumers often overpay for homeowners insurance by including the value of the land that their home resides on. Remember that you only need to insure the home itself and your possessions, not your land. In the event of a total loss due to a fire or other disaster, your land will most likely remain intact.

6. Maintain a Good Credit Score

Maintaining good credit is an effective way to lower your insurance costs. A good credit rating shows the insurance company that you’re more likely to be responsible and may be a lower risk to insure.

7. Discounts, Discounts, Discounts

There are a myriad of homeowners discounts that go unrecognized by many consumers. For example, strong home security and safety features in the form of smoke detectors, security systems, deadbolt locks, storm shutters and fire-retardant roofing can often afford you lower rates.

A new home’s electrical, heating and plumbing systems and overall structure are likely to be in better shape than those of an older home; therefore new homes are usually charged lower rates than older homes in the same price range.

Non-smokers usually get reduced rates on their homeowners insurance policy. If you were a smoker when you bought your house, but have subsequently quit, many insurers may lower your rates. Smoking accounts for over 20,000 residential fires in the U.S. a year, so insurers often charge lower premiums to smoke-free households.

Insurers often offer discounts to seniors and “loyalty discounts” to customers who have purchased policies for a number of consecutive years.