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How To Lower Your Homeowners Insurance Premium
Increase Your Deductible
A deductible is the amount of money you pay on a loss before your insurance company pays for a claim. The higher you set your deductible, the more money you can save off the premium. Currently insurance companies recommend a minimum deductible of $500. Ask your agent how much you would save if you went with a $1000 deductible.
Rebuilding Costs
Many times people think that they need to insure their house for the amount that they purchased it for. This is not the case. If your house were to completely burn down, you would still have the land. Your agent will be able to help you calculate replacement cost of the house.
Multi-Policy Discount
Consider purchasing auto and homeowners insurance from the same company as most companies will give a multi-line discount.
Home Security
Many insurance companies will give a discount for smoke detectors, burglar alarms and dead-bolt locks. Some companies will also give a discount for sprinkler systems.
Good Credit Helps
Insurance companies are using credit scoring more and more to determine premium on homeowners insurance. To understand credit, review this guide.
Private Insurance
If you live in a high-risk area and have been buying your insurance through a government plan, you should check with an insurance agent. You may find that there are steps you can take to buy insurance at a lower price in the private market.
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