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Top 10 Ways to save money on your homeowner’s insurance

Knowing these facts listed below will help you to save money when shopping around for insurance.

1. Deductible - the deductible on your homeowner's policy is the amount you're responsible to pay in the event of a claim. The higher the deductible, the lower your homeowner's premiums will be. Bare minimum, you should select $250 and up.
2. Good Credit - insurance companies are placing more weight on an individual's credit score in determining the premium for a policy. Having excellent credit will place you in the most preferred rating tier with the insurance companies.
3. Losses - Insurance companies base their rates on statistics. Policyholders with no losses in the past 5 years will most likely be placed in the best rating tiers providing all the other information is positive.
4. Alarm Credits - many houses have burglar and/or fire alarms. The more sophisticated your alarm system, will relate to the amount of the discount the insurance company will offer. Check with your insurance agent and your alarm company for the type of alarm you have, and to make sure you're receiving the proper credit. A certificate of installation is normally required for proof the alarm is in your house.
5. Multi Policy Credit - almost all insurance companies offer policyholders discounts for having more than one policy. Try to package your auto and home insurance together to obtain the best rate.
6. Non-smoker Discount - most companies offer non-smoker discounts. If you're a non-smoker, check with your agent to make sure you are getting this credit if available. Some companies are as much as 5%.
7. Proper Amount of Coverage - To properly insure your home, the amount of insurance on the dwelling should be listed at full replacement value. Replacement value is the amount is would cost to rebuild your house at today's costs. Be careful, some companies have a formula to calculate the replacement cost seemingly much higher than actual building costs. Also, most companies raise your dwelling coverage each year to keep pace with inflation. Make sure your dwelling amount doesn't get too out of line after a few years with the same company.
8. Updates - keeping your home updated mechanically can help reduce your insurance premium. For older homes, if the mechanics aren't updated, insurance companies will not place your policy in the most preferred rating tier. By updating the roof, plumbing, heating, and electrical systems, the insurance company will offer a premium normally in line with their most preferred rate.
9. Age of Home - Most companies offer discounts to homes up to 20 years old. The biggest discount would be for a brand new house and then a sliding scale down to homes 20 years old.
10. Address - Insurance rates are much cheaper in the suburbs than the city.

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