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Five Ways to Lower Your Homeowners Insurance Premiums

By Compuquotes Team on March 27th, 2008

Homeowners Insurance

Homeowners insurance is a necessary part of your monthly budget, but it doesn't have to take such a huge bite of it. Here are five tips to help you lower your monthly premiums for homeowners insurance.

1. Raise your deductible.
Raising your deductible is the number one way to reduce the amount you pay for insurance. By agreeing to pay a larger share of the costs of repairing your home, you can lower the cost you pay each month by as much as 25%. Keep in mind that your home insurance often carries several different deductibles, depending on your region. Speak with your insurance agent about which you can lower to save even more on your insurance premiums.

2. Only pay for the insurance that you need.
Many insurers will advise you to be sure that you have enough insurance by considering replacement cost rather than the cost that you paid for your house. This can work for you in saving you money. Your original purchase price for your home - and your home valuation - includes the cost of the land on which your home stands. Get a professional appraisal of rebuilding cost for your home that doesn't include the value of your land to decide how much insurance you should be carrying.

3. Improve your home security.
You can get a reduction on your home insurance premiums by taking basic safety precautions around your home. Installing fire alarms, intruder alarms and safety bars usually will get you a premium reduction. Depending on your insurance company, you may qualify for a bigger deduction if you opt for a hard-wired sprinkler system or a burglar alarm that alerts a security service or the police department. Check with your insurance company to see which systems qualify for lowered premiums.

While you're at it, look at ways to make your home more able to withstand a disaster. You may get a reduction on premiums for doing things like adding storm shutters, reinforcing your roof to withstand windstorms and the weight of snow or strengthening foundations to withstand earthquakes.

4. Insure your home and automobile through the same company.
Many insurers that offer multiple insurance lines will give you a discount if you carry more than one policy with them. If you're satisfied with your auto insurance company, check out their home insurance packages and find out if you can get a discount because you're already a customer.

Once you're with a company that you like, stick with them. Insurance companies reward loyalty with lower premiums. If you stay with the same insurance company for five years, you may get a 5% reduction. Six years or more may get you 10% off on your monthly premiums.

5. Pay your bills on time.
And not just your insurance bills. Many insurance companies have started using credit scores to help them price insurance premiums. If you keep your credit record good, you can expect lower insurance premiums. While some consumer groups are protesting this policy, it's a reality for now.

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