Shop around

The first thing that you should do to save money on your homeowners insurance is to shop around. Different insurance companies charge different rates and the only way to ensure that you are getting the best rate possible is to get a quote from several different insurance providers. Most homeowners do not do this simply because it is going to take some time. But consider how much money that initial investment of time can save you over the course of many years and you may re-consider the importance of exerting the effort now. Start your search process by asking your friends for recommendations, check out the Yellow Pages, contact your current insurance agent, and try to get quotes online. The more information you can obtain the easier you will be able to compare your choices and make the most financially sound decision. Keep in mind that price is not everything and that it is perfectly acceptable to be willing to spend a little more a month to be insured by a company with a reputation you trust, services that is friendly and convenient and claims centers that are efficient. If you decide to have a policy through a lesser known company, be sure that you do your homework to determine whether or not that company is financially sound. Check out consumer guides on the company and read what other policy holders (past and present) have to say about the insurer.

Raise your deductible

The principle is same with virtually any insurance policy, the higher your deductible, the less you have to pay each month on premiums. If you can afford to pay more up-front if something were to happen and you would need to make a claim, you can save a great deal by paying a lower deductible each month. Depending on the area that you live in, you may have separate deductibles for separate types of disasters (i.e. a deductible for windstorms, earthquakes, hail, etc.) Each of these deductibles could be raised so make sure that if you wish to do so you specifically request each type of deductible increase.

Have multiple policies with the same insurance company

Some companies that offer homeowners, auto and liability insurance will take a percentage off of your monthly premium if you purchase multiple policies from them. While this price is often lower than if you were to have different polices with different providers, you will want to compare the numbers to make certain you are getting the best deal. You can also seek out other discounts that may exist. For example, those who are retired typically receive a discount or some employers may provide homeowners insurance benefits as part of their employee benefits package. If you had an insurer prior to purchasing a home and needing homeowners insurance, you may also qualify for a long-term policy holder discount. These special discounts are offered by some insurance companies when their customers have had policies for between three and five years. This premium reduction could be as much as 5% or more depending on how long you have had a policy with the company so it is certainly worth looking into. Again, even with all of these discounts, do not rule out the possibility that there may be another insurance company out there with another rate that could be better than what you have.

Reduce your risk to the insurer

Insurance companies base their policy estimates on how risky they think it would be to provide insurance to you. The less risk you pose to the company, the less fearful they are that they will have to pay out a large sum of money on a claim and the more willing they will be to provide you with a lower premium amount. In the case of homeowners insurance, the more disaster or accident resistant your house is, the more you will be able to save on your insurance. Relatively small changes that will not only reduce your risk to the insurer but will also give you more peace of mind as the homeowner are to consider modernizing your heating, plumbing and electrical systems to reduce the risk of fire and water damage. Thinking along the same lines, you can also get insurance discounts if you purchase and use things like smoke detectors, a burglar alarm or dead-bolt locks. More sophisticated systems can result in even more discounts. While it is always a good idea to make your home as safe as you can, there is a line that many people must find where their peace of mind and their budget have to find a compromise. If your intention in boosting the security of your home is based on lowering your homeowners insurance rate, you might want to ask to see what type of a system your insurer recommends and how much you would save on premiums were you to get that system.

Review your homeowners insurance policy annually

You want to make sure that your homeowners insurance policy adequately represents any major changes that you have made to your home. These changes include what you have, as far as your possession go, on the inside of your home. If you have had certain valuable possessions for many years and the value of those possessions is no longer what you originally wanted them covered for in your floater insurance (an additional insurance plan that covers items that are not typically covered by standard homeowners policies such as expensive jewelry, high-end computers, valuable art work, etc.) you will want to reduce that amount. Of course when you reduce your coverage amount you reduce your premium amount and save some money.

Have insurance in mind when considering the purchase of a home

Homeowners insurance is often thought of only after a decision has been made on whether or not to purchase a home. While no one is claiming that a house of sound construction and appealing design should be bypassed because insurance companies will charge more for a policy, it is definitely something that a homebuyer needs to keep in mind especially if they are on a strict budget. Old homes, homes built close to the ocean and homes in earthquake-prone areas will automatically have higher homeowners insurance rates. A really smart idea is to check the CLUE (Comprehensive Loss Underwriting Exchange) report of the home you are thinking of buying. The CLUE reports contain the insurance claim history of the property and can bring to light some of the insurance claims and consequent problems that the property has had in the past.

Maintain good credit

More and more insurers are using credit histories in their pricing of homeowners insurance policies. To save money on your homeowners insurance policy (and in any aspect of you financial life) it is wise to protect or improve your credit standing by paying your bills on time, keeping credit balances low, and avoiding applying for credit unless it is absolutely necessary. You should also check your credit report annually to ensure that there are no errors on your report. If you are given a higher insurance rate because of a poor credit report, your insurance agent is required (in most states) to inform you of why a higher rate was given to you so that you have the opportunity to check the accuracy of the information that the insurance company is using.

When looking for insurance you do not want to over or under insure, you want to obtain exactly the right amount of coverage that it would take to make you whole again if something tragic were to happen. While now you may be willing to take a coverage costs in exchange for monthly savings, if you under insure yourself and them have to make a claim, you may end up spending much more than you could have ever saved with a lower coverage policy. Use good judgment.