Save Money on your HomeOwners Insurance with these 6 tips

By HomeOwner.Net Editor on October 23rd, 2007

1. Price ShopDon’t just buy the first policy your current carrier offers you. Spend a few minutes talking to a couple of agents. Use a website like HomeOwner.Net or 4BestQuotes.Com to find a top local agent who can give you a competitive quote. It’ll take some time, but could save you money. Ask your friends, check the Yellow Pages or contact your state department of insurance. (Phone numbers and Web sites are listed here.)

2. Try a higher Deductible

Deductibles are the amount of money you have to pay before your insurance company starts to pay a claim. The higher your deductible,the lower the premium. Many carriers recommend a deductible of at least $500. If you can afford to raise your deductible to $1,000 or 2000, you may save hundreds of dollars each year. Since every claim you make is likely to raise your rates in the future, you aren’t going to want to make a claim on small problems anyways. So consider raising your deductible

3. Cover your replacement cost not your purchase price.

You aren’t going to have to replace your land, just your structure and your stuff. So a purchased for 800,000 might be replaced for 400,000. Only buy the coverage you need. (but make sure to get the guaranteed replacement riders, and code upgrade riders that ensure your house can be rebuilt.

4. Buy your home and auto policies from the same insurer

Some companies that sell homeowners and auto insurance coverage discount your premium if you buy two or more policies from them. Just be sure that the combined coverage is cheaper than buying the policies from different companies.

5. Earn your discounts

Many carriers will give you discounts for certain upgrades or additional safety feature. Alarms, deadbolts, and smoke detectors, a new roof, updated wiring, plumbing and sewage systems can all help pay for themselves by earning you discounts from your carrier. You might also rate a lower price if you are a college graduate, retiree, school teacher, or scientist.

Companies offer several types of discounts, but they don’t all offer the same discount or the same amount

6. Stay with the same insurerIf you’ve been a good customer of the same carrier for several years, you may receive a special discount for being a long-term policyholder. Some insurers will reduce their premiums 5 or 10 percent if you’ve been with them for 5 or more years.

6. If you are moving, know what you are buying.

Check the CLUE (Comprehensive Loss Underwriting Exchange) report of the home you are thinking of buying. These reports contain the insurance claim history of the property and can help you judge some of the problems the house may have. If the house has a history of wind or water damage, flooding or burglaries, that will not only affect your rates, it might hint at problems that will affect your peace of mind and comfort living in your new home.

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