10 Surefire Ways To Save With Homeowner Insurance

When you own a home it is important that you carry sufficient home owner's insurance to ensure you are properly guarded.  Insurance can give you peace of mind, but it should not break your back.  Here are 10 surefire (in case of a fire you need to be sure ) ways to save money on your homeowner insurance policy.

A typical homeowner’s policy covers you for loss against your home, your personal belongings and property and for liability to other parties.  You can buy different coverage and you can also buy additional coverage for specific items such as jewelry or that rare Picasso you just happen to have in the loft. 

It’s important to understand the policy you are buying and what exactly it does cover.  More importantly it is also to understand what it does NOT cover, so it is critical that you read the exclusion section.  In fact if you read nothing else in your policy read what you are not covered for so there are no nasty surprises (after your house has burned down/flooded/fill in suitable catastrophe here).

Take some time at the start of the process and define what you cover you are looking for. Once you know what coverage you need it’s time to save some money.  Follow these 7 tips to do just that.

1. Look Around
With any purchase it pays to shop around.  Ask friends and family for their recommendations.  Check and compare rates online.  Who is advertising on TV? Check with consumer agencies to find out reputations and trcak records.

2. Make Your Deductible (Excess) Higher
The higher your deductible (or excess) the lower your premiums will be.  This is a great way to save some money but you need to be smart about it!  Don’t choose a deductible that is more than you could afford to outlay. 

3. Combine Policies
If at all possible purchase your home, auto, health care, or any other policies you require from the same company.  Often multiple policies can earn you up to 25% discount on all your policies.

4. Disaster Proof
Check with your insurance agent to find out what upgrades would be beneficial. If you disaster proof your home you can earn additional discounts.  Storm shutters, stronger roof materials, even making your home earthquake proof can save you money. Of course, this all needs to be calculated on a 'how much can I afford now?'

5. Home Security
You can save anywhere from 5% to 20% a year if you install home security equipment.  Smoke detectors, dead bolts, sprinkler systems, and burglar alarms are all considered home security and each earns you a discount.

6. Good Credit
Believe it or not, your credit history affects your insurance costs.  That’s because the industry believes if you have good credit you are more responsible and therefore less likely to have a claim.  So make sure your credit stays healthy.

7. Be Consistent
Stick with the same insurance company.  Staying with the same company will usually earn you a discount on your premiums.  Most companies will give you a 5% discount after 3 years and a 10% discount after 6 years. 

8. Check Your Limits
Be sure to pay close attention to your coverage.  Don’t pay for coverage you don’t need and do be sure to have adequate coverage where you need it.  That fur coat you insured for $10,000 ten years ago.  Do you still own it?  That beautiful diamond ring that cost $5000, do you have coverage on it?

9. Know Before You Buy
When in the market for a home, watch for those little things that can make the difference in your policy premiums.  Fire hydrants within so many feet can reduce your premiums.  A volunteer fire department can increase your premiums.  Some types of heating can increase your premiums.  Some districts can increase your premiums. 

10. Get The Discounts
Many insurance companies offer a variety of discounts so be sure to ask.  For example seniors often earn a discount of 10% or more.  Membership in some associations will also earn you a discount. 

Your homeowner insurance policy should provide you with peace of mind that should you need to make a claim you will be covered.  It deserves your time and effort to ensure you’ve got the best policy for your needs!