How To Lower Your Homeowners Insurance Premium

With all the airtime allotted to commercials touting auto insurance savings, it’s easy to lose sight of homeowners insurance. But despite the lack of PR, there are as many ways to save on your homeowners insurance as there are to save on your car insurance. Follow these four tips, and you could save hundreds of dollars a year on your homeowners insurance premium.

  1. Insure your house, not your land. Let’s say the market value of your house is $250,000. If you’re like most people, you’ll want to buy a homeowners insurance policy to cover that entire amount. But doing so could result in an unnecessarily high premium. Even if your house burned down or was completely destroyed in some other fashion, chances are the value of your land would not be affected. In fact, it might increase if a larger or more elaborate home were to be built on the property. What you DO need your policy to cover is the cost of replacing any structures or possessions that could be destroyed.
  1. Bolster your home’s security. Putting deadbolts on all of your doors can cut your homeowners rate by a significant amount. Installing a burglar alarm can decrease your premium even more. While the upfront costs may be substantial, most advanced security systems pay for themselves within a couple of years.
  1. Buy a bundled homeowners and auto insurance policy from the same company. Nearly every company that sells both homeowners and auto insurance offers significant discounts when you buy both policies at the same time. But here’s the catch: Discounts can very widely from one company to another. Occasionally, a company that offers you a great rate on auto insurance can’t get you a comparable discount on homeowners insurance – or vice versa. In that case, you’re better off getting your auto and home coverage “à la carte” from two separate companies.
  1. Shop around. When it comes to getting your best price for homeowners insurance, you have to shop around. Because the same amount of coverage varies in price from company to company, you won’t know if you’re getting a low premium unless you compare rates from multiple carriers. Just make sure that those carriers are highly-rated when it comes to paying claims.

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