How to Save Money on Homeowner's Insurance: 5 easy steps

In the market for a new home? Homeowner's insurance is a must. Before picking a company for your homeowner's insurance policy, there are some things your must consider. Here is how to save money on your homeowner's insurance.

Difficulty: Moderately Easy

Instructions

1. 
    

   Compare Companies
   
   Look at the different insurance companies to find out which one is best for you. Ask your friends who they have for their homeowner's insurance. Research the company information online and call and ask questions. Make a chart with their different quotes as well as the information listed in steps 2 to 5 to compare the best rates.

2. 
    

   Home Security
   
   Do you have an alarm system for your home. Include the certificate along with your application. Most companies will take off 15% for that year. You have to make sure to send it with each yearly renewal so the insurance company will know that you still have a home security system.

3. 
    

   Higher Deductible
   
   The higher the deductible, the less you pay yearly. But make sure you can afford the deductible. That is the amount one has to pay if something happens to your home before the insurance company will give you the rest to pay for the damage. The best deductible to pay is $2500. It will lower your policy by 25 to 30% a year.

4. 
    

   Organization/Job Discounts
   
   Do you belong to certain associations or organizations? There are many that are associated with insurance companies that will give discounts if you are a member. Also depending on your job or occupation you may receive a discount. For example, teachers who belong to certain teacher associations can receive discounts with the insurance companies associated with those particular teacher organizations.

5. 
    

   Combine Policys
   
   If you already have car and life insurance policys, with a particular insurance company, find out about their rates for homeowner's insurance. You may end up saving up to 10 to 15% for having at least two policys with the same company.

Tips & Warnings

• Have your homeowner's insurance included in escrow with your mortgage company. This way when the payment is due, the mortgage company will send it off for you.
• Look at the zip code of the home you wish to buy and compare other zipcodes. Sometimes depending on the location, your homeowner's insurance can be lower if the home is in a low crime area.

[kristara]

on 7/25/2009 Great money saving tips! 5*

[botticelli728]

on 7/21/2009 Great ideas; I've added this to my Favorites. 5*

[lezsays]

on 7/21/2009 These are great tips and every new home buyer should read this.

[Mitestarossa]

on 7/20/2009 Thank you for this money saving advice.

[shenandoah]

on 7/20/2009 Good tips! Thanks for writing this.