A homeowners insurance premium represents the money an insurance company is willing to accept in order to assume the risk of any potential covered loss. Lower the risk and you reduce the premium. You can lower your homeowners insurance policy in many ways. Some involve spending money on your home, some involve being a good consumer and others require taking more of the risk upon yourself.
The simplest way to lower your premium is to take on additional risk. You do this by raising your deductible. You eliminate small claims which raise future premiums. You are still protected in the event of a fire or a tree falling on your house. You can get quotes from any insurance company that will tell you how much you save by raising the deductible. You then decide how much risk you are willing to assume and how much money you want to save.
You can save money by spending money to make your home safer. A simple example is a smoke detector or new dead bolts on every door. A more expensive option is a home security system that calls the police if triggered. The key is to find out which improvements result in discounts. Not every insurance company gives the same discounts. Safety improvements give you peace of mind and save money.
Check with numerous insurance companies to find the lowest quote. Make sure you use the same limits and deductibles for every quote. Consider bundling your auto insurance with your homeowners. Most companies give discounts as a means of attracting more business.
Some insurance companies use credit scores. Lower scores mean higher premiums. You have some control over your score. Request your free copy and review it carefully. Protest any mistakes, wrong information or outdated material. Anything you remove will raise your score. Once you raise your score, find some quotes and see if your premiums have gone down.
- Insurance Information Institute: 12 Ways to Lower Your Homeowners Insurance Costs
- Farmers Insurance: Keeping Homeowners Insurance Premiums Down
- Missouri Department of Insurance: What Affects Home Insurance Prices?
- GMAC Insurance: How to Lower Your Homeowners Insurance Premium
- AnnualCreditReport.com: Home
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