Real Estate Tips

Reducing Homeowner's Insurance


The average premium for homeowner's insurance has increased eight percent nationwide since 2001, according to the Insurance Information Institute. With rates constantly on the rise, now is a good time to review your policy to find ways to save money.

Here are a few recommendations to keep your rates within reason:

Shop around. Compare quotes from at least three insurance companies and then evaluate which can provide you with the best customer service and level of coverage, while offering competitive prices. Be aware that the cheapest quote may not be the most appropriate for your needs. In the event that you need to make a claim, quality of service will be an important factor in the process that could make or break your experience.

Raise your deductible. Generally speaking, the higher your deductible, the lower your monthly premium will be. By raising a $500 deductible to $1000, you can save at least 25 percent on your monthly payments.

Double-dipped policies. Some companies will reduce your premium up to 15 percent if your automobile insurance and home insurance policies are through the same insurer. Group policies through an employer or professional group may be an option as well.

Home security discounting. Certain safety features installed in your home can lower costs even more. For example, installing a smoke detector, burglar alarm or dead-bolt lock can allow you to save at least a 5 percent on the premium. Putting in a state-of-the-art fire or burglar alarm that notifies security stations or a sophisticated sprinkler system can reduce premiums up to 20 percent. These systems can be very expensive. Before spending a fortune on a new alarm system, find out what your insurer recommends, how much it will cost and how much money you can save.