How Can I Save Money on My Homeowners Insurance?

In today's booming real estate marketplace you'll have plenty of options when it's time to choose a homeowners' insurance plan. Once you start examining your options you'll quickly find that not all insurance coverage was created to do the same job.

If you want to get the coverage you need and pay as little for it as you can, you're going to have to do a little homework.

Why Does Homeowners’ Coverage Differ For Each Home?

Homeowners' Insurance rates can vary depending on how your home was constructed and where it's located. Location and construction alone doesn’t automatically decide your rate: you should still be able to find a variety of ways to save money on your homeowners insurance.

Insurance companies will offer you discounts for a number of reasons, including if your home is brick rather than wood framed, if it's close to the nearest fire hydrant, fire station, on an easily accessible road or in a town that isn't overly congested. Such discounts will be different in each state and at every insurance company.

In general, you'll be able to save money on your homeowner's insurance by remembering to do any of the following 6 things:

1. Improve Your Credit Score: Most insurance companies take your credit score into account when they price your insurance policies. If your credit score is healthy, your homeowner's insurance rates will be lower. So before you go insurance shopping, make sure you don't have too any overdue credit accounts, too many open accounts, or charges close to the limits of your credit cards.
2. Comparison Shop: Just plain shopping around can save you as much as 20% on your homeowners insurance. Be sure to get quotes from at least four agents, and don't forget to take any longevity or multiple policy discounts you're eligible for through your current insurance carrier into account as you compare prices.
3. Think About Raising Your Policy Deductible: If your homeowners' policy currently has a very low deductible of $100.00 to $200.00, think about raising it to at least $1000.00 to $2,000.00. It may save you as much as 25% on your premiums.
4. Combine Your Car Insurance and Homeowner's Insurance Policies: If you're happy with the company that insures your car, think about buying your homeowner's insurance policy from them as well. Most insurers will offer you a discount of between 10 and 20% if you buy more than one type of coverage from them.
5. Take Advantage of Every Discount You Can: Homeowner's Insurance Policies come packed with potential discounts. You can get a discount for having deadbolt locks, smoke detectors, a fire extinguisher, security or fire alarm systems, etc. You may even qualify for a 10% discount once you retire. As you shop, ask agents about all the discounts available to you.
6. Make Sure Your Insurance Coverage is Up To Date: Read through your homeowner's policy at least once a year, before your policy is due to renewal. Dig through all of the details; give your insurance agent a call to discuss any changes in you'd like to make, new discounts you may qualify for, etc.