12
Tips to Save Money on Homeowners Insurance
 From
types of building materials to security systems, there
are a number of ways you can save money on homeowners
insurance. We’ll give you 12 ways to cut your
payments.
Although discounts vary by state and
insurance company, there are countless ways you can
cut what you spend on homeowners insurance, according
to an article on Insure.com. You may be surprised to
find out you can save because you live across the street
from a fire station or because your roof is tile rather
than wood!
• Shop around. Check with
as many insurance companies as you can to get different
quotes. You can also look into referrals from family
and friends who like their insurance companies.
• Combine policies. You can obtain discounts by
buying your home and auto insurance from the same company.
• Raise the deductible. The deductible is the
amount of money you are responsible for toward a loss
before the insurance kicks in. Deductibles usually start
at $250, but if you can afford to pay a higher deductible
out of pocket, you can save the following:
- $500 deductible saves up to 12% on premiums
- $1,000 deductible saves up to 24%
- $2,500 deductible saves up to 30%
- $5,000 deductible saves up to 37%
• Heighten safety and security. Enhancing safety
and security can save up to 10% (or 5% each) on your
homeowners insurance. Some safety and security measures
you can add include deadbolt locks, smoke detectors
and burglar alarms. Some companies will offer a heftier
discount if you install a home security system. Check
with your insurance company before purchasing a system
to find out what discounts are offered and what systems
they recommend or prefer.
• When home shopping, consider the insurance.
When buying a home, another consideration to have is
the cost of insuring the home. A newer home’s
components are likely to be in better condition than
an older home’s components, so a newer home may
cost less to insure. You will also want to consider
the construction and building materials used in the
home in relation to where you live. On the East Coast,
you’ll want a home that will stand up to wind
damage, while on the West Coast, you’ll need to
consider how earthquake-proof the home is.
• Don’t insure the land. Your home and its
contents are at risk from theft, fire, earthquakes,
floods and other perils, but the land your home sits
on is not. Don’t include the value of the land
on which your home sits when deciding how much insurance
you need to purchase.
• The senior discount. If you are at least 55
years old and retired, you may qualify for a discount
of up to 10% on your homeowners insurance. The reason
being that insurance companies have found that retired
persons are home more than working folks, which makes
them more likely to spot problems, such as fires, theft
or broken pipes.
• Quit smoking. Some insurers offer a discount
on premiums if no one in the home smokes, as smoking
accidents account for a whopping 23,000 residential
fires a year!
• Be loyal. If you keep your coverage with the
same insurance company for a number of years, you may
receive special discounts. Some insurers will reduce
premiums by 5% if you stay with them for three to five
years, and some will offer discounts up to 10% if you
stay with them after six years.
• Group coverage. Some alumni and business associations
have deals with an insurance company to offer members
discounted rates. Check with your association’s
director or watch your newsletter for any deals.
• Go private first. If you live in a volatile
area (one that is at high risk for storms, fires, earthquakes
or crime) and you think you will have to buy homeowners
insurance from your state’s high-risk insurance
pool, check with your insurance agent first. You may
be able to buy insurance at a lower price in the private
market.
• Review your policy annually. It is critical
to review your policy every year, as you want your policy
to reflect your home and possessions accurately. If
you set a time to review your policy (such as when your
premium is due), you can make any necessary adjustments.
If you just sold a valuable piece of artwork, for example,
you won’t need as much coverage. If, however,
you added on a bathroom, you’ll need to cover
the extra room in your policy.
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