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Homeowners Insurance Cost Saving Tips

Since homeowners insurance is an expensive purchase it is important to participate in a cost saving strategy that will ensure you receive the best value for your money.

Typically if you pay a higher deductible on your homeowners insurance your will receive a lower premium. The recommended deductible is $500.00, but if you can afford to raise your deductible to $1,000.00 you can save as much as 25 percent to 30 percent annually.

Also purchasing homeowners insurance through the same company that sells your auto or liability insurance coverage can take five percent to fifteen percent off your premium. In addition, if you remain with the same insurer for several years you can receive a discount for being a long-term policyholder.

Consumers can also reduce their premiums by making their homes more disaster resistant. Making your home more resistant to natural disasters by installing storm shutters, reinforcing your roofing, modernizing your heating, plumbing and electrical systems can help you save on your premiums. In some states new homes may qualify for discounts as well as if your home is constructed of either frame or brick.

Homeowner's insurance premiums can also be reduced if your home is more secure by simply installing deadbolt locks, fire extinguisher, smoke detector, or home security system. Keep in mind the more sophisticated the home security system is, the more you may be able to save on your premium. Before purchasing a particular home security system you should check with your insurer to find out their recommendations and see if the system you want to purchase is covered.

Your home's distance from a fire hydrant and the quality of your local fire department determines your fire protection class, thus affecting your insurance premium.

Also comparison shop to see which company offers the lowest premium for the amount of coverage you need. Different companies charge different rates for the same coverage. There are number of unbiased resources that will assist you in comparison shopping such as public libraries, your state insurance division, consumer groups, and consumer publications. Another useful tool in comparison shopping is price quotations, however it is crucial to provide the same quote information to each company and agent.

Utilize the resources at your state insurance department. Every state insurance department has personnel available to answer questions regarding home insurance coverage. Also before signing an application for insurance coverage call the insurance department and verify that that company and the agent you are dealing with are licensed in your state. Most states offer a web site that will allow you to check the licensing status of an agent or broker. It is illegal for unlicensed insurers to sell insurance and you have no guarantee that the coverage you pay for will be honored if an agent or company is not licensed.

Sources Cited:
Insure.com
Insurance Information Institute
NV Division of Insurance

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