Homeowners' insurance prices can vary significantly. Companies offer several types of discounts, but they don't offer the same discount or the same amount of discount in all states. Ask your insurance agent or company representative about any discounts available to you.
Steps to help you save money on your homeowner's insurance
1. Shop around
Friends, family, the phone book and the Internet are good sources to find homeowners insurers.
Don't consider only price. Look for a fair price and excellent service. Quality service may cost a bit more, but you buy insurance in case you need to make a claim, so talk to a number of insurers to get a feeling for the service they give. Ask what they would do to lower your costs.
Also, check the financial ratings of the companies with AM Best or Standard and Poor's.
2. Deductibles
Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay. The higher a deductible you take, the lower your premium will be.
3. You may want to purchase your home and auto policies from the same company
Some companies that sell homeowner's, auto and liability coverage will take a percentage off your premium if you buy two or more policies from them.
4. When you buy a home ...
Consider how much insuring it will cost. A new home's electrical, heating and plumbing systems and overall structure are likely to be in better shape than those of an older house. Insurers may offer you a discount if your house is new.
5. Improve your home security and safety
You can usually get discounts for a smoke detector, burglar alarm or dead-bolt locks. Savings go up for a sophisticated sprinkler system and a fire and burglar alarm that rings at a monitoring facility. Before you buy such a system, find out what your insurer recommends and how much the device would save you on premiums. To get the discount for a home security system, you must provide proof that it has been activated.
6. Be a non-smoker
Smoking accounts for more than 23,000 residential fires a year. Some insurers will reduce premiums if all the residents in a house don't smoke.
7. Try to get group coverage
Alumni and business associations often offer a discount for association members. Ask your association's director if an insurer is offering a discount on homeowner's insurance to members.
8. Stay with an insurer
If you stick with your insurer, you may receive special consideration. Several insurers will reduce their premiums if you stay with them for three to five years.
9. Compare your policy limits to the value of your possessions annually
You want your policy to cover any major purchases or additions to your home, but you don't want to spend money for coverage you don't need.
10. Compare public vs. private insurance programs
If you live in an area especially vulnerable to coastal storms, fires or crime and are planning to buy homeowner's insurance through a government plan, check to see if you can buy insurance at a lower price in the private market.
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