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Guide to Save on Home Insurance

- Get Quotes from Different Insurance Companies. When buying home insurance, you can shop around different insurers to ask for quotes. You can email or call the customer service of the insurer to obtain a quote. If you have friends who purchased home insurance, you can ask them to give recommendations.

- Increase the Amount of the Deductible. The deductible is the amount of money that the policy holder pays for the loss or damage costs. The deductible of the home insurance begins at $250. According to the Insurance Information Institute (III), by increasing the amount of the deductible to $500, you will be able to save at least 12% on the premium fee. If you want to save 24% in the premium fee, you should increase the deductible to $1000. Despite that, you must make sure that the deductible amount does not exceed your budget.

- Buy the home and auto insurance from the same Insurer. Most insurance companies offer discount if you purchase the home and auto insurance from them.

- Consider the Construction Structure of the House. When purchasing a house, you should take into account the condition of the home. New homes have better electrical and plumbing systems, so you are likely to be charged with a lower rate. Since old homes need repair, you will be charged with a higher home insurance premium.

You should also take into account the building structure of the house. If the house is built near a coast, you will want to make sure it can withstand the wave and wind damage. If the house is on the Pacific Coast, the construction structure must be built specifically to protect it against the earthquake damage. Since the home insurance don't offer coverage for these natural disasters, it is important that you buy a separate insurance for them.

- Don't Take into Account the Value of the Land. Though the house and the furniture in it are vulnerable to the thieves, the land is not. Therefore, you should not take into account the value of the land when buying home insurance. Instead, you should let the insurance agent help you to calculate the coverage cost.

- Install Security System in the House. If you improve the security system in the house, you can lower the price of the premium. Some of the security system which you can install in the house includes smoke detectors, burglar alarms and door locks. The more sophisticated the security system, the bigger the discount it will be. If you want to lower the premium cost, you can ask the agents to give you recommendation on the types of security system which will be eligible for a discount.

- Don’t Smoke Cigarettes. Studies have shown that approximately 23,000 of residential fires are caused by the cigarettes stubs. Some insurance companies offer discount for policy buyers who don’t smoke.

- Have Senior People Stay in the House. Senior people who stay in the house can help to spot the fire quickly and report it to the working people. With the senior people around, they can look after the house more efficiently. If you are 55 years old and have no daily duties, you could be eligible for a 10% discount in the insurance premium. However, not all insurance companies offer this type of discount. You can do some research on the internet to find insurance companies that offer the discount.

- Ask your Company if They Offer Home Insurance Premium Incentive. If you work for a large company, you can find out if they offer discount on home insurance premiums. If the company offers this incentive, you will be able to benefit from the discount.

- Stay with the Same Insurer for Several Years. If you have been purchasing insurance from the same company for several years, you might be qualified for a discount. Some insurance company offers a discount in home insurance premium for up to 5% to loyal customers who have stayed with them for 3 – 5 years. The longer you stay with them, the higher the discount you will be bestowed.

- Evaluate the Insurance Policy Coverage Every Year. The policy you purchased should reflect the value of your house. You will want to check the coverage annually to increase the insurance premium as necessary. For example, if you have extended the garage room, you will want to increase the premium and coverage. If you have sold some expensive antique furniture, you will want to deduct the amount from the premium so that you don't have to pay for the unnecessary amount.

- Resolve to Private Insurance as Your Priority. If your house is situated in a high risk region, you can check with the insurance agent to see if you need to buy additional coverage from the state's insurer. If you do this, you might obtain a lower insurance premium from the insurance company rather than buying from the state's insurer.

- Opt for Automatic Payments. Most companies will charge customers $5 each time they send the statement to you. Instead, you can request the payment to automatically deduct to avoid paying the unnecessary cost. You will need to provide your credit card numbers to the insurance company.

- Get Discount with Good Credit Score. Before you are allowed to buy home insurance, you are required to show the credit report to the insurance companies. If you have a lousy credit history, you will be charged with a higher premium rate. If you maintain a good credit history, you will be charged with a much lower premium rate. If you want to save money, you should maintain your credit report in good standing.

- Purchase Actual Cash Value. If you purchase the actual cash value, the coverage will pay for the value of the damaged property after deducting the deductible. In this way, you will pay a lower premium.

Stand-in cost coverage will compensate the full value of the damage item. The compensation will be released to you after you purchased the new furnitures and hand over the proof of receipt to the insurers. Replacement cost coverage allows you to obtain full compensation for the property but the premium is more expensive.

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