Six Ways to Save Money on Your Homeowners Insurance

When you’re seeking the best buy for your homeowners insurance, you’ll want to explore with your agent all of the available ways to get the best insurance value for your dollar.

Fortunately, there are many actions you can take to reduce your premium and still maintain the appropriate amount of coverage.

Tailor Your Policy Limits

The rule of thumb is that you’ll pay about $20 for every $200,000 worth of liability coverage you have greater than $300,000. So, tailor your liability coverage to meet your budget.

The same with property coverage. Do not count the value of your land in the calculation of the worth of your home.  You’re not insuring the land, just your structure. Make sure you get the coverage your comfortable with and not more than necessary.

Raise Your Deductible

Deductibles are the amount of money you pay toward a loss before your insurance company begins to pay the claim. The higher the deductible, the less the premium.

For example, if you have a $500 deductible but feel you can afford a $1000 deductible, you can save as much as 25 percent on your premium.

Check and see if you have separate deductibles for certain kinds of perils.

Multiple Policy Discount

Buy your home and auto policies from the same insurance company. This can reduce the premium by up to 15%.

Improve Your Home Security

If you install dead bolt locks or smoke detectors you can usually get at least 5 percent off of the premium.

Installing a home burglar system, depending on how sophisticated it is, can reduce your premium by as much as 20%. Remember, though, that not all of these systems qualify. So, if you plan on buying one of these systems, check with your agent about discounts.

Prevent Disasters

You might be able to save on your premiums if you install storm shutters or reinforce the roof. Check with your agent about what kind of discounts are available for making your home more disaster resistant.

Stay with the Same Insurance Company

If you stay a number of years with the same insurance company, you can sometimes get a premium reduction.

There may be other discounts, too. For example, some companies offer discounts of up to 10 percent if you’re 55 years old and retired.

Have your agent scour the all of the companies they represent to find all the discounts that may be available to you.