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16 Ways to Lower Your Homeowners Insurance Costs

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1. Shop around to get lower homeowners insurance costs

As in many other areas, shopping around will take some time, but could save you a good sum of money.
I made a huge survey prior to purchasing my homeowners insurance and you wouldn’t believe how much money I saved.
The three companies above are the companies that offered me the best value for money Homeowners insurance costs.
If you want to search for homeowners insurance costs yourself, states often make information available on typical rates charged by major insurers and many states provide the frequency of consumer complaints by company.

When coming to choose your homeowners insurance company don't consider price alone. The insurer you select should offer a fair price and deliver the quality service you would expect if you needed assistance in filing a claim. In order to assess the service quality offered by different homeowners insurance companies I went through dozens of review sites to get a feeling for the type of service each company gives.
The three companies I’m recommending above are those I found best in terms of value for money, but don’t hesitate to ask them what they would do to lower your costs.

2. Raise Your Deductible

Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums.
Most insurance companies recommend a deductible of at least $500, but If you can afford to raise your deductible to $1,000, you may save as much as 25 percent on your homeowners insurance costs! Remember, if you live in a disaster-prone area, your insurance policy may have a separate deductible for certain kinds of damage. If you live near the coast in the East, you may have a separate windstorm deductible; if you live in a state vulnerable to hail storms, you may have a separate deductible for hail; and if you live in an earthquake-prone area, your earthquake policy has a deductible.

3. Don’t confuse what you paid for your house with rebuilding costs

The land under your house isn't at risk from theft, windstorm, fire and the other perils covered in your homeowners insurance policy, so there’s no need to include its value in deciding how much homeowners insurance to buy.
Remember that the estimated value of your property has a direct influence on your homeowners insurance costs.

4. Buy your homeowners insurance and auto policies from the same insurer

As in many other areas, sometimes mass buying entitle you some bonuses.
Some homeowners insurance companies will take 5 to 15 percent off your premium if you buy two or more policies from them.
It’s not always the case, so make certain that the combined price is lower than buying the different coverage from different companies.

5. Make your home more disaster resistant

Find out from your insurance agent what steps you can take to make your home more resistant to windstorms and other natural disasters. You may be able to save on your premiums by adding storm shutters, reinforcing your roof or buying stronger roofing materials.
Older homes can be retrofitted to make them better able to withstand earthquakes. In addition, consider modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage.

6. Improve your home security

Many homeowners insurance companies provides discounts of at least 5 percent for a smoke detector, burglar alarm or dead-bolt locks. Some companies offer to cut your premium by as much as 15 or 20 percent if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations. These systems aren't cheap and not every system qualifies for a discount. Before you buy such a system, find out what kind your insurer recommends, how much the device would cost and how much you'd save on premiums.
I bought those systems for my new house using this web site, it gives a great value for money and there service is perfect.

7. Ask if you are eligible for homeowners insurance group coverage

Companies offer several types of discounts, but they don't all offer the same discount or the same amount of discount in all states. For example, since retired people stay at home more than working people they are less likely to be burglarized and may spot fires sooner.
If you're at least 55 years old and retired, you may qualify for a discount of up to 10 percent at some homeowners insurance companies. Some employers and professional associations administer group insurance programs that may offer a better deal than you can get elsewhere.

8. Seek homeowners insurance discounts for Home Improvements

A new home's electrical, heating, and plumbing systems, and overall structure for that matter, are likely to be in better condition than those of an older home. Accordingly, their homeowners insurance costs are generally lower as the risk for a potential claim is mitigated. If you have made any home improvement in the past year, you should see if a new policy will reward you with policy discounts.

9. Maintain a good credit record

What does your credit score have to do with getting a good deal on insurance? More than you might think. Insurance companies frequently check your credit score to determine how much they should charge you for insurance. Consider it one more reason to stay on top of your credit.
To protect your credit standing, pay your bills on time, don't obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.
You can use this site to check your credit status for free.

10. Stay with the same homeowners insurance company

If you've kept your coverage with a homeowners insurance company for several years, you may receive a special discount for being a long-term policyholder. Some insurers will reduce their premiums by 5 percent if you stay with them for three to five years and by 10 percent if you remain a policyholder for six years or more.
Although staying with the same homeowners insurance company has its benefits, make certain to periodically compare this price with that of other homeowners insurance companies.

11. Don't buy Homeowners Insurance Coverage you don't need

It makes no sense to buy insurance to protect yourself against risks you are unlikely to encounter.
For example, earthquake coverage in a non-earthquake zone, or a jewelry floater to your policy if you don't own expensive jewelries

12. Review the limits in your homeowners insurance policy and the value of your possessions once a year

You want your homeowners insurance policy to cover any major purchases or additions to your home, and you don't want to spend money for coverage you don't need. If your five-year-old state of the art computer is no longer worth the $5,000 you paid for it, you'll want to reduce or cancel your floater (extra insurance for items whose full value is not covered by standard homeowners policies such as expensive jewelry, high-end computers and valuable art work) and pocket the difference.

13. Look for private homeowners insurance costs if you are in a government plan

If you live in a high-risk area, one that is especially vulnerable to coastal storms, fires, or crime, you might have been buying your homeowners insurance through a government plan.
You should check with a private homeowners insurance agent, as you may find that there are steps you can take that would allow you to buy homeowners insurance at a lower price in the private market.

14. Avoid Risks That Insurers Shun

Insurers are shying away from some risks.
For instance, owning certain types of dogs (Rottweiler, Doberman, Pit Bulls) can limit or void your policy. Owning a swimming pool or a trampoline can increase your cost of coverage. Read all the fine print in your policy under the "Conditions and Coverage" sections so you know all the things that are excluded from coverage. You may opt to buy additional coverage to protect yourself from certain exposures

15. Give up Smoking

According to the U.S. Fire Administration/ National Fire Data Center there were over 16,500 residential fires caused by smoking in 2007. With statistics like this one on the book, it's not surprising that homeowners insurance costs more for smokers. If you smoke, and are serious about lowering your bill, consider quitting

16. When buying a house, consider the homeowners insurance costs

You may pay less for insurance if you buy a house close to a fire hydrant or in a community that has a professional rather than a volunteer fire department. It may also be cheaper if your home’s electrical, heating and plumbing systems are less than 10 years old. If you live in the East, consider a brick home because it's more wind resistant. If you live in an earthquake-prone area, look for a wooden frame house because it is more likely to withstand this type of disaster. Choosing wisely could cut your premiums by 5 to 15 percent.

And a little tip: Use the homeowners insurance to assist you before buying a new place

Check the CLUE (Comprehensive Loss Underwriting Exchange) report of the home you are thinking of buying.
These reports contain the insurance claim history of the property and can help you judge some of the problems the house may have.