Ways to Reduce the Cost of Homeowners Insurance

Insuring against risk that may never occur makes insurance a necessary evil. Paying for homeowners insurance cover is an expensive chore. Too many people pay more than they need for cover, yet there are many ways to reduce the premiums and save money on homeowners insurance expenditure. Cost reducing measures can be implemented in a variety of ways.

Ensuring your property is as well guarded as Fort Knox will garner reductions. Alarm systems, sprinklers, dead bolts, security cameras, and barbed wire fences may all contribute to a reduction in premiums, but it pays to comparison shop between companies to see what discounts they offer.

Homeowners can’t do much to change their age, but the over 55s can often take advantage of further discounts. It may be going too far to move an elderly relative in with you to claim the discount, but anyone in this age range should bring it to the insurance company’s attention. An existing insurer may be willing to offer discounts to prevent policy holders moving to a different company.

Comparison shopping for the best cover at the least expense may sound contradictory when some insurers will offer a loyalty discount. However, the benefits of moving all insurance cover to the same company will reap discounts on several insurance policies at once.

Home insurance premiums are now influenced by credit reports, as insurers draw a correlation between those with good credit being more responsible types who are more likely to maintain their property in better condition and pay attention to safety issues.

It pays to check your credit score before taking out a new insurance policy and work to increase it if it is less than excellent. Those with excellent credit will be offered preferential insurance rates. Similarly, reductions can sometimes be received by making automated or annual payments.

It may sound obvious, but it pays to know exactly what your policy covers as it is perfectly possible to be paying for unnecessary cover. Read existing policies carefully and check the cover offered as you comparison shop.

A simple way to reduce the cost of insurance is to raise the level of deductibles you are willing to pay in the event of a claim. This step needs careful consideration and depends on the policy holder having enough cash put aside to deal with an emergency.

It may be self defeating to only have coverage after you have personally paid the first $500 or other dollar amount of the deductible.

The best way of reducing the costs of homeowners insurance is to comparison shop and then raise each potential discount with the individual insurer to garner further discounts. Some are willing to offer discounts for non-smoking households, whilst other penalise dog owners.

If you can combine all the positive aspects which insurers take on board when pricing your policy, then a good saving can be made. In an ideal world, you should be an over 55 non-smoker without a dog, with smoke detectors, sprinklers and security bars installed in your home, with an excellent credit reputation.