How to Save Money on Your Home Insurance Premiums

Home insurance policies are vital for protecting your biggest investment and for peace of mind. Unfortunately, the premium payments can often be priced higher than what some homeowners can comfortably afford. There are some things you can do, however, to save money on your home insurance policy. Follow these steps to reduce your premium payments and while still having adequate protection for your home.

Difficulty: Moderately Challenging

Instructions

1. Double or even triple your deductible. By taking the highest deductible available for your policy, you can save hundreds of dollars each year on your premium payments. If you invest the savings in an interest-bearing account, it will likely grow to a figure much larger than your deductible.

2. Install security features in your home. A theft-security system is the most common thing you can do to save money on your home insurance policy, but there are other things you can do, too. A sprinkler system, deadbolt locks and handrails are just a few things that insurance companies offer discounts for.

3. Live in a low-risk area. Some areas are at high risk for natural disasters while other areas have higher insurance costs because of the amount of crime. If you find an area with less crime, you’re likely to save money on your home insurance policy.

4. Evaluate your insurance needs from a realistic perspective. Instead of getting too much insurance that you don’t need, try to insure only those items that you will want replaced in the event of a disaster.

5. Maintain a respectable credit rating. More insurance companies are basing their premium prices on a policyholder’s credit score. By paying your bills on time each month, you can increase your score and get a better price for your home insurance policy.

6. Keep claims to a minimum. Each claim has the potential to raise your premium prices. Only make claims when it is necessary to do so.

Tips & Warnings

• Read your policy thoroughly. Taking some extra time to understand everything discussed in the policy could save some unwanted surprises when it’s time to make a claim.
• Too many claims in a short period of time could cause your policy to be canceled. Only make claims when they are absolutely necessary.
• Don’t consider the land as part of the insurance coverage. Purchase coverage for only the structure and its contents. The land that it sits on won’t be destroyed and does not need to be insured.