Home Insurance Articles

4 Factors That Can Lower Homeowners Insurance Rates

2010-08-17

One major cost, besides the mortgage, in owning a home is the home insurance rates. One way to lower overall home ownership costs is to lower insurance premiums. Many factors cannot be changed without moving: areas prone to natural catastrophes, proximity to a fire station, house structure and age. You can, however, take these factors into account when buying a home. The strategies below focus on ways to get lower insurance premiums for your current home.

Deductible

One of the easiest ways to save on your home insurance rates is to raise your deductible. The way to make this seem less risky is to set aside the deductible amount in savings so you have it on hand if you need to file a claim. Ask for quotes that give you several different deductible levels so you can see the difference in the rates. Some deductibles are a flat rate, but other policies have a deductible that is a percentage of your home's insured value, which is normally from 1 to 5 percent. You should know what kind of deductible you already have so you are comparing like policies.

Security

Upgrading the security in your home can result in lower insurance premiums. If you have no alarm system, consider having one installed. If you have a standalone alarms installed, think about switching to a monitored alarm system. Having a deadbolt, door locks and window bars are options you may consider. All of these measures may lower your premiums. To get even more reductions join and participate in the local neighborhood crime watch program. It must be a program that is recognized by local law enforcement.

Multi-Policy Discounts

Get your home insurance with the same company that provides your auto or life insurance. Of course, you have to balance the rates offered by other insurance companies to see if the switch would result in overall lower insurance premiums.

Renovations

If you have recently replaced the roof on your home you can get a significant discount. Keep all receipts and documentation. Your insurance company will lower your insurance premiums if you can prove that the roof is new and in good condition.

There are some other personal factors that may affect your home insurance rates such as smoking, owning a certain breed of dog, having a trampoline or having a swimming pool in your backyard. But barring major life changes and unhappy kids you may want to use the ideas above to lower your home insurance rates. Finally, talk to your insurance provider to know if there are other options you may have overlooked since different insurance providers offer variations of the same discounts.