10 Ways to Reduce Home Insurance Costs

Home insurance, a legal necessity when you begin paying your mortgage, and a practical tool after, can have significant costs if you do not buy the right insurance to fit your needs.

1.) Raise your deductible.

If you are unwilling to take any of the risk then you will be forced to pay extra for that choice. But insurance is designed to protect you from unforseen excessive costs. If you set your deductible at a reasonable level (preferably at or above $1,000) that will significantly lower your premium.

2.) Only insure your home - not the land.

While the land may be part of the price you paid for your home, in most cases you do not need to insure it as it is not likely to be lost/destroyed/diminished in value by a fire or a burglary.

3.) Shop around

Insurance contracts are essentially bets that companies make that something will not go wrong with your home/car/health/life/etc. Risk premium calculations can vary widely between different companies. Shop around for the best deals possible.

4.) Ask for discounts

Some insurance providers offer lower rates if you package/bundle together multiple insurance products like home insurance, auto insurance, and life insurance. If you have been a loyal insurance customer with no claims or few claims they may be able to offer you discounts on additional insurance products.
Some insurance companies offer discounts for seniors, military members, police officers, fire fighters, and other groups. Check to see if you qualify for any special member discounts.
Business associations, employers, and alumni may also offer special discount rates.

5.) Keep a clean credit score

Since insurance contracts are risk contracts many insurance companies use credit scores in part to determine how risky a particular consumer may be. Paying your bills on time and keeping credit card debt low are keys to building a strong credit score.

6.) Install protective & safety features

Ask your insurance agent questions about discounts for observing home safety and security protections. Fire extinguishers, deadbolt locks, smoke detectors, and alarm systems can significantly lower your premium.

7.) Stop smoking

Smoking causes over 20,000 fires a year. If nobody in your home smokes, inform your insurance agent and you may be eligible for a discount.

8.) Make sure your homeowner’s insurance is comprehensive

If you are in an Earthquake or flood prone area make sure you buy additional coverage. These additional insurance coverages can cost hundreds per year, but generally are not part of a typical home insurance contract.

9.) Inventory your possessions yearly

If the value of your home and/or possessions changes significantly, make sure you inform your insurance agent and adjust your policy.

10.) Ask questions!

You can reach your state Insurance Department using the following phone numbers:

AL:
AK:
AS:
AZ:
AR:
CA:
CO:
CT:
DE:
DC:
FL:
GA:
GU:
HI:
ID:
IL:
IN:
IA:
KS:

205-269-3550
907-465-2515
684-633-4116
602-912-8400
501-686-2900
916-445-5544
303-894-7499
203-297-3800
302-739-4251
202-727-8002
904-922-3100
404-656-2056
671-477-5106
808-586-2790
208-334-2250
217-782-4515
317-232-2385
515-281-5705
913-296-7801

KY:
LA:
ME:
MD:
MA:
MI:
MN:
MS:
MO:
MT:
NE:
NV:
NH:
NJ:
NM:
NY:
NC:
ND:
OH:

502-564-3630
504-342-5900
207-582-8707
410-333-6200
617-521-7777
517-373-9273
612-296-6848
601-359-3569
314-751-2640
406-444-2040
402-471-2201
702-687-4270
603-271-2261
609-292-5363
505-827-4500
212-602-0203
919-733-7349
701-328-2440
614-644-2658

OK:
NE:
OR:
PA:
PR:
RI:
SC:
SD:
TN:
TX:
UT:
VT:
VI:
VA:
WA:
WV:
WI:
WY:

405-521-2828
503-378-4271
504-342-5900
717-787-5173
809-722-8686
401-277-2223
803-737-6160
605-773-3563
615-741-2241
512-463-6464
801-538-3800
802-828-3301
809-774-2991
804-371-9741
206-753-7301
304-558-3394
608-266-0102
307-777-7401

10 Ways to Reduce Home Insurance Costs

Home Security