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Homeowner’s insurance prices can vary significantly. Companies offer several types of discounts, but they may not offer the same discount or the same amount of discount in all states. Ask your insurance agent or company representative about any discounts available to you.
Tips to help you save money
1. Shop around
Friends, family and the Internet are good sources to find homeowner’s insurers. Don't focus on price alone. Look for a fair price and excellent service. High-quality service may cost a bit more, but if you need to make a claim, the extra service you get may be worth it. Ask what they would do to lower your costs. You may also want to check the financial ratings of the companies with AM Best or Standard and Poor.
2. Compare deductibles
Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay.
3. Consider purchasing your home and auto policies from the same company
Some companies that sell homeowner’s, auto and liability coverage will take a percentage off your premium if you buy two or more policies from them.
4. See if you can get a new-house discount
A new home's electrical, heating and plumbing systems and overall structure are likely to be in better shape than those of an older house.
5. Improve your home security and safety
You can usually get discounts for a smoke detector, burglar alarm or dead-bolt locks. Insurance savings go up if there’s a sophisticated sprinkler system and a fire and burglar alarm that rings at a monitoring facility. Before you buy such a system, find out what your insurer recommends and compare the cost of the system to savings on premiums.
6. Be a non-smoker
Smoking accounts for more than 23,000 residential fires a year. Some insurers will reduce premiums if all the residents in a house don't smoke.
7. Try to get group coverage
Alumni and business associations often offer a discount for association members. Ask your association's director if an insurer is offering a discount on homeowner’s insurance to members.
8. Stay with an insurer
If you stick with your insurer for three to five years, you may qualify for a premium reduction.
9. Compare your policy limits to the value of your possessions annually
You want your policy to cover any major purchases or additions to your home, but you don't want to spend money for coverage you don't need.
10. Compare public vs. private insurance programs
If you live in an area especially vulnerable to coastal storms, fires or crime and are planning to buy homeowner’s insurance through a government plan, check to see if you can buy insurance at a lower price in the private market.
Published on January 08, 2007