Homeowners Insurance is essential. For most of us, our homes are the single largest investment we will ever make. It's a good idea to protect your home, protect your belongings, and protect the assets you’ve worked so hard for!
Having homeowners insurance isn't required by law, however most mortgage lenders require you to have homeowners insurance in order to borrow money from them.
The price you pay for your homeowners insurance can vary by hundreds of dollars, depending on the size of your house and the insurance company you buy your policy from. Here are some ways to save money.
1. Explore Your Options
Ask friends, check the internet, and open your phone book. Get quotes from several different companies. Evaluate your price comparisons with the service each company offers. Quality service may cost more financially, but might eliminate headaches later should you need to make a claim. Check the ratings of companies with AM Best or Standard and Poors.
2. Raise Your Deductible
Deductibles are the amount of money you have to pay for a loss before your insurance company pays. Deductibles on homeowners policies typically start at $250. Increase your deductible to:
$ 500 -- save up to 12 percent
$1,000 -- save up to 24 percent
$2,500 -- save up to 30 percent
$5,000 -- save up to 37 percent
3. 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.
4. When You Buy a Home Consider How Much Insuring It Will Cost
A new home’s systems and structure are likely to be in better shape than an older home. Insurers could offer you a discount of as much as 8-15% if your home is new. Avoiding flood zones could save you about $400 a year for flood insurance. Also the closer you are to a fire hydrant also makes a difference on you premium.
5. Insure Only What You Can Rebuild
Don’t include the value of the land underneath your home when deciding how much homeowners insurance to buy. It is not at risk from theft, or natural disasters or other perils. If you do, you'll pay a higher premium than you should.
6. Take Advantage of Security and Safety Discounts
You can get disounts of up to 5 percent for a smoke detector, burglar alarm, or dead-bolt locks. Some insurers will discount if you install a fire and burglar alarm that rings at the police station or other monitoring facility.
7. Stop Smoking
Since smoking accounts for more than 23,000 residential fires a year, some insurers offer premiums for non-smokers.
8. Seek Out Discounts for Seniors
If you're at least 55 years old and retired, you may qualify for a discount of up to 10 percent at some companies.
9. Stay With an Insurer
You may receive special consideration if you have been with the same company more several years. Several insurers will reduce their premiums by 5 percent if you stay with them for 3 to 5 years; or by 10 percent if you remain a policyholder for 6 years or more.
Ask friends, check the internet, and open your phone book. Get quotes from several different companies. Evaluate your price comparisons with the service each company offers. Quality service may cost more financially, but might eliminate headaches later should you need to make a claim. Check the ratings of companies with AM Best or Standard and Poors.
2. Raise Your Deductible
Deductibles are the amount of money you have to pay for a loss before your insurance company pays. Deductibles on homeowners policies typically start at $250. Increase your deductible to:
$ 500 -- save up to 12 percent
$1,000 -- save up to 24 percent
$2,500 -- save up to 30 percent
$5,000 -- save up to 37 percent
3. 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.
4. When You Buy a Home Consider How Much Insuring It Will Cost
A new home’s systems and structure are likely to be in better shape than an older home. Insurers could offer you a discount of as much as 8-15% if your home is new. Avoiding flood zones could save you about $400 a year for flood insurance. Also the closer you are to a fire hydrant also makes a difference on you premium.
5. Insure Only What You Can Rebuild
Don’t include the value of the land underneath your home when deciding how much homeowners insurance to buy. It is not at risk from theft, or natural disasters or other perils. If you do, you'll pay a higher premium than you should.
6. Take Advantage of Security and Safety Discounts
You can get disounts of up to 5 percent for a smoke detector, burglar alarm, or dead-bolt locks. Some insurers will discount if you install a fire and burglar alarm that rings at the police station or other monitoring facility.
7. Stop Smoking
Since smoking accounts for more than 23,000 residential fires a year, some insurers offer premiums for non-smokers.
8. Seek Out Discounts for Seniors
If you're at least 55 years old and retired, you may qualify for a discount of up to 10 percent at some companies.
9. Stay With an Insurer
You may receive special consideration if you have been with the same company more several years. Several insurers will reduce their premiums by 5 percent if you stay with them for 3 to 5 years; or by 10 percent if you remain a policyholder for 6 years or more.
10. Review Your Policy Each Year
Have you made any upgrades or improvements in the last year? You might need to adjust your policy. Double check and make sure you aren’t spending money for coverage you don't need.
Have you made any upgrades or improvements in the last year? You might need to adjust your policy. Double check and make sure you aren’t spending money for coverage you don't need.
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