14 Tips to Lower Your Homeowners Insurance

Ready to cut some costs in 2014?! Take a look at your current homeowner’s policy and see where you can save some money before you renew. It’s worth your time to do some leg work now to determine if you may qualify for some credits to lower your premium but still have the coverage you need. Here are 14 simple tips:

Ready to cut some costs in 2014?! Take a look at your current homeowner’s policy and see where you can save some money before you renew. It’s worth your time to do some leg work now to determine if you may qualify for some credits to lower your premium but still have the coverage you need.

Here are 14 simple tips:

1.) Shop around. Quotes on homeowners insurance can vary by hundreds of dollars for the same coverage on the same home. Get at least three quotes and make sure each insurer is offering the same coverage. And that includes shopping with your current insurer — sometimes you can even save money by buying a completely new policy with them.

2.) Buy home and auto policies from the same insurer. Some companies that sell homeowners, auto and liability coverage will take 5 to 15 percent off your premium if you buy two or more policies from them.

3.) Raise your deductible. If you can afford to raise your deductible to $1,000 from $500, you may save as much as 25% on your annual premium. Avoid making claims under $1,000 so that your rates don’t rise.

4.) Improve your home security. Install a smoke detector, burglar alarm or dead-bolt locks and save at least 5 percent. Some companies may 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, so check with your insurer first.

5.) Maintain a good credit record. Insurers are increasingly using credit information to price homeowner insurance policies. In most states, your insurer must advise you of any adverse action, such as a higher rate, at which time you should verify the accuracy of the information.

6.) Stay with the same insurer. If you’ve kept your coverage with a 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. BUT … don’t get lulled into thinking it’s always a good deal so you should periodically compare this price with that of other insurers (and remember even shop for a new policy with your current insurer!)

7.) Review the limits in your policy and the value of your possessions at least once a year. You want your policy to cover any major purchases or additions to your home. But you don’t want to spend money for coverage you don’t need anymore. Some items depreciate over time so review your policy annually so you don’t have too much coverage.

8.) Upgrade older features. If you have an older home update your plumbing, electrical and heating and/or air conditioning systems to prevent fire or unwanted leaks. You’ll be less risky and can reduce your rates. Also talk to your agent to find out if there are other upgrades you should consider.

9.) Look into water and gas leak sensors. Insurance companies may lower your bill because these devices help prevent claims since you’ll know there’s a problem before there’s major damage. This new generation of home sensors can alert you if there is moisture or a gas leak in your home and many can be self-installed. Active water detectors can even shut off the water source!

10.) Don’t insure the land. Homes can be damaged in fires, floods, and other mishaps, but there’s not much that can go wrong with land. Purchase enough insurance to cover the value of your home, and let the land take care of itself.

11.) Give up smoking. Insurance costs more for smokers because of an increased risk of fire-related claims. If you smoke, and are serious about lowering your bill, consider quitting. If you were a smoker when you took out the policy but have recently quit let your insurer know.

12.) Make payments electronically. Many companies now charge for mailed payments, so have your payments automatically deducted to shave that cost.

13.) Reconsider pool or hot tub. These may or may not impact your premium depending on where you live so talk to your agent before you get one. If you already have one, discuss the measures necessary to decrease any risk.

14.) Double check dog breed. Certain breeds will either cause your insurance company to cancel coverage or increase your insurance rate. So you might want to find out which breeds affect insurance rates before you get a dog. If your dog attends obedience training, let your agent know and it can mitigate any increases.

Hope you can find ways to save some money this year. Every little bit counts and adds cash in your pocket!