10 Tips to Lower Home Insurance Costs

Are you a home owner looking for ways to save money? Well here’s a quick list of 10 ways you can lower your home insurance costs.

1) Consider raising your deductible. If you need to make a claim, the deductible is the amount you need to pay before your home insurance coverage starts paying. The amount you choose for a deductible affects your premium. You will pay less on your insurance bill with a higher deductible amount. Just be sure you can come up with the deductible in the event of a claim so you can get your repairs done.

2) Compare quotes from other home insurers. Rates for home owners insurance can differ quite a bit from one company to the next. They also change from time to time so it’s a good idea to do some comparison quote shopping. This could save you hundreds of dollars a year on your home insurance costs. Try to get at least three different quotes for comparison.

3) Combine your auto insurance with your home insurance. Most companies offer a discount or even special packages if you insure both your home and vehicles with them.

4) Make sure you have the right coverages. You don’t want to pay for more coverage than you need. Home insurance covers your house, personal possessions and liability; not the land your home is on. So don’t include the land value in your coverage limits. However, you want to make sure your home is covered for the cost to replace it, not the cost when it was built. Material costs go up over time and if you don’t have replacement coverage you could end up short in the event of a claim.

5) Make your home more secure. Install quality deadbolt locks and a home security system. This will reduce your chance of a claim and very well qualify your for money-saving discounts.

6) Make your home safer. Smoke detectors, a fire sprinkler system and a fire alarm system that rings a fire department or monitoring company can protect you and your family and save you money through discounts on your home insurance.

7) Make your home more resistance to disasters. Upgrade your plumbing and electrical and make sure your roof is in good condition. If you live in an earthquake-prone area, see about retrofitting your home so it can better withstand quakes.

Keep a good credit score. Insurance underwriters at many companies often use credit ratings as one factor in assessing risk. Maintaining a good credit score can help you save money in the long run.

9) Don’t pay for coverages you no longer need. If you took out any special riders or coverage for jewelry, computer equipment or other high-ticket items and no longer have them, you may be paying more than necessary. Take the time to review your policy against your personal possessions and update it if needed.

10) Look into insurance costs when buying a home. The age and location of your home, building materials and more can all affect how much you pay for coverage. If you live in a flood zone, you may even need special flood insurance. Considers these factors when looking for a home.