Helping you save money on all your insurance needs.

Lower Your Homeowners Insurance

Homeowners insurance (sometimes called hazard insurance) is a property insurance that covers private residential homes.  Most policies cover losses occurring to a home, the contents within the home, the loss of use as well as liability insurance for accidents that may happen on the property.



Save on Homeowners Insurance Most home insurance policies are what are known as term insurance.  That is, the insurance coverage is good for a specified period of time (typically 1 year).  To get the protection of the insurance, an annual premium is paid to the insurance company.  In general, if an insurance company thinks that your home is less likely to suffer a loss, then your premiums will be lower.  Your mortgage lender will require you to obtain homeowners insurance as they are the ones that actually own your home (until your home loan is paid off).  In addition to covering the home and its contents, a homeowners insurance policy will also provide you with some liability protection in the event that an accident occurs on your property.  In order to get the lowest possible premium on your insurance contract, below are a few things that you should consider.

  • Shop Around - Homeowners insurance rates can vary greatly from insurance company to insurance company.  You'll want to get several quotes before deciding which company to sign up with.  The best way to locate companies to get quotes from are by asking your friends and family about their experiences with their insurer, searching through the Yellow Pages or contacting your state insurance department.  Before signing up with any insurance company, ask for the ratings from A.M. Best or Standard & Poor's.  An insurance company with low ratings may not be around when you need them (and you probably won't get your premiums back either).
  • Bundle Your Insurance Needs - When signing up for homeowners insurance, you'll often get a discount if you also have other insurance products (auto or life) with the same insurance company.  You can sometimes get a 5 to 15 percent discount if you buy two or more policies from the same insurance company.
  • Raise your Deductible - The deductible is the amount of money that you must pay before your insurance company starts to pay a claim.  By raising your deductible, you can lower your annual premiums significantly.
  • Improve Your Credit Score - While you may not see the correlation here, insurance companies like to insure people with good credit.  If you have credit problems, your homeowners insurance premiums are likely higher than someone with good credit.  If you are getting ready to shop for a new policy, it might be a good idea to first have your credit report pulled to see if there are any ways that you can improve your credit score before applying.
  • Improve Home Security / Safety - Installing a home security system or having safety items such as fire extinguishers in your home can lower your annual insurance premiums for your house.  These discounts can be substantial, so make sure you talk to your agent and find out what things can be done to improve the safety of your home and lower your insurance costs.
  • Loyalty Counts For Something - Most insurance companies reward customers who stay with them for longer periods of time.  If you have been a good customer, call your insurance company and make sure that you are getting the loyalty discounts that you deserve.