Here are the tips to save on your homeowners insurance cost. A wide variety of discounts are available, and these discounts will vary by state and insurance company.
Don't confuse what you paid for your house with rebuilding costs
While your home and its content are at risk from fire, theft, windstorms and other perils, the land under your home is not. Don't include the value of the land in deciding how much homeowners insurance you need to buy.
Buy Multiple Policies from the same insurer
It might a good idea to get it all together. Many insurance companies that sell homeowners insurance also provide auto insurance. They may offer a discount if you buy both policies from the same company. The discount could be as high as 10 to 15%. Be sure to verify that the combined price is lower than buying the different coverage from different company.
The Building Material of your house
What your house is made if will actually make a difference in how much you pay. For example, wood houses carry higher premiums than good, solid concrete structures. Also check with your insurance agent what you can do to make your home more resistant to windstorms and other natural disasters. You might find that you can save on your premiums by adding window shutters, reinforcing your roof or installing stronger roofing materials. In addition, consider modernizing your heating, cooling, plumbing and electrical system to reduce the risk of fire and water damage.
Security systems and Safety Factors
Most insurance companies will give discounts if you have fire alarms and/or a security system installed. The distance from your house to nearest fire station may also afford you an extra discount. Your insurance company may also offer a significant discount of 15 0r 20 percent if you install a sophisticated home security system. If you're thinking about buying such a system, check with your insurer to see which systems you'll get a discount for.
Raise your deductible
A deductible is the amount of money you pay towards a loss before your insurance policy begins to pay a claim. The higher your deductible, the more money you can save on your premiums. Most insurance companies recommend a deductible of at least $500. Increase your deductible to:
$500 and save up to 12% on your premiums.
$1,000 and save up to 24 %
$2,500 and save up to 30 %
$5,000 and save up to 37 %
For example, let's say that your home has a current market value of $225,000. Of that price, perhaps $100,000 may be directly related to the value of the land, while the remaining $125,000 would be the actual value of the house. You should insure your home for the amount it would take to replace the house, don't include the cost of the land.
Seek out other discounts
Companies offer several types of discounts, but they don't all offer the same discount or the same amount of discount in all states. For example, since retired people stay at home more than working people they are less likely to be burglarized and may spot fires sooner, too. 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. Some employers and professional associations administer group insurance programs that may offer a better deal than you can get elsewhere.
Don't confuse what you paid for your house with rebuilding costs
While your home and its content are at risk from fire, theft, windstorms and other perils, the land under your home is not. Don't include the value of the land in deciding how much homeowners insurance you need to buy.
Buy Multiple Policies from the same insurer
It might a good idea to get it all together. Many insurance companies that sell homeowners insurance also provide auto insurance. They may offer a discount if you buy both policies from the same company. The discount could be as high as 10 to 15%. Be sure to verify that the combined price is lower than buying the different coverage from different company.
The Building Material of your house
What your house is made if will actually make a difference in how much you pay. For example, wood houses carry higher premiums than good, solid concrete structures. Also check with your insurance agent what you can do to make your home more resistant to windstorms and other natural disasters. You might find that you can save on your premiums by adding window shutters, reinforcing your roof or installing stronger roofing materials. In addition, consider modernizing your heating, cooling, plumbing and electrical system to reduce the risk of fire and water damage.
Security systems and Safety Factors
Most insurance companies will give discounts if you have fire alarms and/or a security system installed. The distance from your house to nearest fire station may also afford you an extra discount. Your insurance company may also offer a significant discount of 15 0r 20 percent if you install a sophisticated home security system. If you're thinking about buying such a system, check with your insurer to see which systems you'll get a discount for.
Raise your deductible
A deductible is the amount of money you pay towards a loss before your insurance policy begins to pay a claim. The higher your deductible, the more money you can save on your premiums. Most insurance companies recommend a deductible of at least $500. Increase your deductible to:
$500 and save up to 12% on your premiums.
$1,000 and save up to 24 %
$2,500 and save up to 30 %
$5,000 and save up to 37 %
For example, let's say that your home has a current market value of $225,000. Of that price, perhaps $100,000 may be directly related to the value of the land, while the remaining $125,000 would be the actual value of the house. You should insure your home for the amount it would take to replace the house, don't include the cost of the land.
Seek out other discounts
Companies offer several types of discounts, but they don't all offer the same discount or the same amount of discount in all states. For example, since retired people stay at home more than working people they are less likely to be burglarized and may spot fires sooner, too. 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. Some employers and professional associations administer group insurance programs that may offer a better deal than you can get elsewhere.
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