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10 Ways to Lower Your Homeowners Insurance Premium

By Compuquotes Team on March 27th, 2008

Homeowners Insurance

Homeowners insurance is an absolute must, whether home is a palace or a cozy cottage, but the cost of your home insurance can vary by hundreds of dollars. While it's important to have enough coverage to replace or repair your home and belongings if they're damaged or stolen, there's no reason you should pay more for Homeowners insurance than you need to. Here are ten tips that will help you find the best prices on Homeowners insurance and keep those home insurance premiums low.

1. Consider the cost of home insurance when you buy a home. The neighborhood and structure of your new house could cut up to 15% off your insurance premiums. Look up the Comprehensive Loss Underwriting Exchange report on your home to give you an idea of the claims that have been filed under previous home insurance policies for the house. You may get lower rates for such oddly diverse things as being near a fire hydrant, having a brick house, or having wiring or plumbing that is less than ten years old.

2. Check with your auto and life insurers first. Often, your current insurance agent or company will be willing to offer a discount on home insurance if you already carry other policies with them.

3. Shop around. Don't automatically assume that the deal you're offered by your current insurance company is the best. Once you decide which coverage you need, compare prices among several home insurance companies, both locally and nationally. The internet is a good place to comparison shop and be sure that you're getting the lowest possible premiums.

4. Seek out other discounts. You may be entitled to discounts for many different reasons. Some professional groups offer discounted home insurance if you buy through them. Check with AARP, if you're a member, and with AAA, as well as any professional or social groups to which you belong. You may also get discounts if you work at home or are retired and home most of the day, or meet certain other criteria.

5. Consider a higher deductible. The deductible is the amount you'll have to pay out of your own pocket before insurance takes over. Most insurance companies recommend at least a $500 deductible, but if you can afford to pay more, you'll pay less in premiums. Raising your deductible to $1,000 can save you as much as 25% on your Homeowners insurance.

6. Make improvements to your home. Improving your home by adding safety and security features will make a dent in the premiums that you pay - just tailor them to your area. A home security system can lower the cost of theft insurance. Adding storm shutters or reinforcing your roof to lessen damage from storms can decrease the premium you pay for storm damage. Hard-wired smoke detectors and a sprinkler system can lessen the amount you pay for fire coverage.

7. Stay with the same insurer. If you've had your policy for some years, it usually pays to keep doing business with the same insurer. Still, shop around every few years to see if you can find better prices. If you do, talk to your current insurance agent. They'll often be willing to lower your premiums to keep your business.

8. Pay your bills on time. Not just your insurance bills, but all your bills. Insurance companies often base their premiums on your credit record. Keep it clean for the lowest home insurance prices.

9. Review any riders and the value of your possessions every few years. It's important to keep your insurance values at current replacement costs of some items, but others may have lost value since you insured them. Why pay for a $5,000 rider on an item that's now only worth $2,000?

10. Avoid risks that insurers don't like. For instance, a trampoline in the back yard can raise your damage liability premium. If you add an in ground pool, check to see what safety measures you can take that might mitigate the rise in insurance premium that it may incur.

The most important thing is to keep your insurance current, but watch out for unneeded coverage. If you shop wisely and keep up to date, you should have no trouble getting the lowest premiums available.

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