How to Save Money on Home Insurance

Home insurance is typically not going to be the biggest ticket item on your bills this year, but it's important to seek ways to reduce the ultimate costs. The extra money you save could go towards your home loan principle!

Get Multiple Quotes - Saving Money on Home Insurance Tip 1

The easiest way to save money on your home insurance is to call around to get quotes from different companies. There are a number of resources online that will allow you to compare quotes from different home insurance companies, which can save you a lot of time. You can also call around to local insurance agencies to get quotes.

Raise Your Deductible - Saving Money on Home Insurance Tip 2

Your deductible is the amount you have to pay out-of-pocket before the home insurance company will start to cover costs. The higher your deductible, the lower your home insurance premium. If you're only worried about larger disasters, raising your deductible from $500 to $2000 might not be that big of a deal to you, but it could save significantly on your premiums

Understand Rebuilding Costs - Saving Money on Home Insurance Tip 3

When considering your home insurance coverage, keep in mind that the amount you paid for your home is different than the rebuilding costs because if your house is destroyed, you still have the land it came on. So, your rebuilding costs you need to cover through your home insurance may actually be less than your purchase price, especially if you have a significant amount of land as well as the house.

Improve the Safety of Your Home - Saving Money on Home Insurance Tip 4

There may be ways that you can improve the disaster resistance of your home in order to reduce your home insurance premium. For instance, adding storm windows, or updating from a fuse box to a breaker box for your electrical might drop your insurance costs. Also, installing certain safety devices like burglar alarms and smoke alarms that alert emergency response can also save some money. Ask your home insurance company for a list of such items.

Consolidate Insurance Plans - Saving Money on Home Insurance Tip 5

Having multiple types of insurance plans with a single insurance provider can qualify you for some discounts. For instance, if you have your home insurance and your car insurance with the same provider, you might be able to reduce your costs by a certain percent.