According to the National Association of Insurance Commissioners, the average annual U.S. premium for homeowners insurance was $822 in 2007. This number tends to vary across the country, with some states even paying as much as $1,000 more than others. Regardless, for homeowners who feel they are shelling out too much hard-earned cash for their insurance premiums, there are a few steps that can be taken to alleviate some of the cost.
Raising your deductible might be the easiest bet. Homeowners can shave off as much as 25% of the premium by raising deductibles from $500 to $1,000. For those who only file claims in the case of a large emergency, a higher deductible may be worth the savings. Owners of older homes might want to avoid this option. Examine your situation to determine if this is a smart choice for you.
Making home improvements is also a great way to lower costs. Do you need a new roof? Would your home benefit from an updated heating or plumbing system? Even safety features like alarm systems can help you save in the long run. Fencing pools and trampolines (or even getting rid of them all together) lowers your claims risks in the eyes of your insurance company and these efforts will be rewarded in savings. Once your home improvements are completed, be sure to let your insurance company know immediately. You may be able to save up to 15%.
As with most financial endeavors, keeping your credit score high will help your case. Many companies use these scores to determine rates based on consumers’ credit history. Granted, this isn’t the only factor in determining your insurance premium, but good credit still goes a long way toward keeping insurance costs down.
Multipolicy deals should never be overlooked. By combining your homeowners insurance with your auto or life insurance, you may be eligible for another 5-15% of savings, which really adds up compared to buying insurance from all separate companies. Look into combining your policies and do some comparison shopping. You may be surprised at the numbers.
There are many ways homeowners can save money on their homeowners insurance. Be sure to review your policy regularly to ensure that it is up to date and accurate, and crunch those numbers wherever you can. By combining many of the suggestions above, you can save quite a bit of money while still protecting your home.
Sources: Bankrate, National Association of Insurance Commissioners
