1. Shop around
Comparison shopping is a great way to save money. When insurance companies compete for your business; you win. Results have shown that consumers can save 20 % and more just by taking five minutes to compare rates from top rated insurance companies. Compare Homeowner Insurance Now has done all the research and due diligence to make sure that you can get all the facts you need here at our site.
2. Raise your deductible
Homeowners who increases their deductible from $250 to $500 could save as much as 15% on monthly premiums. Raising your deductible to $1,000, could save as much as 25 percent.
3. Insure your home, not the land.
In different parts of the country the land is actually more valuable than the house that sits on it. Even though your home and your belongings are at risk from fire, storms, vandalism and other risk, the land your house sits on is not. When deciding how much homeowners insurance you need to buy do not include the land.
4. Buy your home and auto policies from the same insurer
Some companies that sell homeowners, auto and liability coverage will take 5 to 15 percent off your premium if you buy two or more policies from them. But make certain this combined price is lower than buying the different coverage’s from different companies.
5. Improve your home security
You can usually get discounts of at least 5 percent for a smoke detector, burglar alarm or dead-bolt locks. Some companies offer to cut your premium by as much as 15 or 20 percent if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations. These systems aren’t cheap and not every system qualifies for a discount. Before you invest in a system, find out what kind your insurer recommends, how much the device would cost and how much you’d save on premiums.
6. Are you retired
Retired people who stay at home more than working people are less likely to be burglarized and may spot fires sooner. Retired people also have more time for maintaining their homes. If you’re at least 55 years old and retired, you may qualify for a discount of up to 10 percent at some companies.
7. Maintain a healthy credit record
Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price homeowners insurance policies. If your insurance company relies on credit scoring, they may use it in two ways:
- Underwriting — Deciding whether to issue you a new policy or to renew your existing policy.
- Rating — Deciding what price to charge you for your insurance by placing you into a specific rating "tier" or level.
Review your credit rating and it’s accuracy often.
10. Review the limits in your policy and the value of your possessions at least once a year
Your policy should cover any major purchases or additions to your home. However you don’t want to waste money for coverage you don’t need. Insuring expensive items that you may have sold or no longer possess such as jewelry, china, silver, high tech equipment etc. Adjust/review your policy annually.
11. Add Safety Improvements
Adding safety features to your homes can pay for themselves quickly. Installing a smoke alarm or deadbolt lock, adding a fire extinguisher can earn a discount up to 5% with most insurers. Installing a high-tech security systems or shatterproof windows to protect against hurricanes and severe weather can reduce premiums as much as 10% to 25%.
12. Pay your homeowners bill annually
Pay your homeowners bill annually and you avoid the monthly convenience fee of $2 to $5 that many insurers tack on. If you cannot afford this check on signing up for monthly automatic payments that are setup through online banking and can also lead to a discount
13. Ask for additional discounts.
Always ask for additional discounts. What organizations do you belong to? Do you have memberships to groups such as AARP, AAA, military or trade organizations?
Consider these discounts before purchasing a home
Homeowners insurance on new vs. old homes
You’ll pay up to 15% less if the home’s heating, plumbing and wiring systems are less than a decade old.
Construction materials
Ask insurers which materials are preferred locally. A brick house built in the Midwest, Southeast, Northeast would get a positive rate for its ability to withstand wind. However the same house would be less desirable and cost more to insure on the West Coast, where brick is among the least stable in an earthquake.
Flood zoning
Check to see if the home is in a zone at risk for flooding, homes in these flood zones require extra insurance adding an average $400 annually, according to the Insurance Information Institute.
Neighborhood
Pay attention to the risk factors in your neighborhood, such as crime rate, homes proximity to the fire department, how far is the nearest fire hydrant and the closest police station. The less risk in the neighborhood the lower the premium.
Past claims
Check with the past homeowner for a copy of the home’s Comprehensive Loss Underwriting Exchange (CLUE) report, which details the property’s history of insurance claims.
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