Reward Yourself

There are many ways to save money on homeowners insurance. Most people know about the common ways, but many still may not ask their insurance company if they offer these discounts, get them applied to their policies to lower their rates, or think about sw

April 1, 2009

There are many ways to save money on homeowners insurance. Most people know about the common ways, but many still may not ask their insurance company if they offer these discounts, get them applied to their policies to lower their rates, or think about switching to a company that offers more ways to save.

Check out the lists below and see how many of the ways of saving money on insurance apply to you.

Don't Confuse What You Paid With Rebuilding Costs

The land under your house isn't at risk from theft, windstorm, fire and the other perils covered in your homeowners policy. So don't include its value in deciding how much homeowners insurance to buy. If you do, you will pay a much higher premium than you should.

Multi-Policy Insurance = Multi-Line Discount

Various insurance companies offer various discounts for more than one policy. If you have your vehicle(s) insured with the same company that insures your home, you could be looking at significant savings on both your homeowners and auto policies.

The Higher the Deductible, the Less Out of Your Pocket

Try not to get carried away. Remember, the deductible is the amount that will come out of your pocket before your insurance company starts paying.

Safety Means Savings

That's right, deadbolts and smoke alarms will get you a discount on your homeowner's policy, but throw in a central station burglary alarm, and you could be looking at an additional discount of 10%!

Stop Smoking

We know, you hear it all the time, from your kids, your family and your doctor, and now from your insurance company! Smoking accidents account for more than 23,000 residential fires every year. Some insurers offer to reduce premiums if no one in the home smokes.

Life Style Status

Many insurance companies offer discounts to first-time homebuyers, retired homeowners and homeowners over 50. Be sure to ask!

Make Your Home More Disaster Resistant

Find out from your insurance agent or company representative what steps you can take to make your home more resistant to windstorms and other natural disasters. You may be able to save on your premiums by adding storm shutters, reinforcing your roof or buying stronger roofing materials. Older homes can be retrofitted to make them better able to withstand earthquakes. In addition, consider modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage.

Keep it Clean

Check your credit rating. Many companies check your credit and base your policy on the information they find. Make sure your credit report is as clean as possible; if it's not, find the insurance companies that don't run credit checks.

Pay Early & Electronically

Many companies now charge up to $5 for mailed payments. That's $5 on top of their monthly billing service charges. It's best to pay your premiums in one lump sum, but if you can't electronic payments are the next best thing.

Don't be shy, shop around!

Check with several different insurance companies to get rate quotes. It doesn't cost anything and you're not obligated! Just be sure to compare apples to apples, or else it could become an ominous task