6 Factors in Reducing Your House Insurance Cost

Since your home is such a big investment, it’s no wonder that insuring that home can also be a costly proposition.  That doesn’t mean you can’t save some money on the cost of your house insurance.  Following are 6 factors that go into finding savings on homeowner’s insurance.  Some have greater potential for saving than others, but certainly as you begin to add them together the savings pile up.   

Factor 1 – Competition.  Insurance businesses are just that, businesses.  Competition in this industry is quite intense.  Let that competition work in your favor.  Look around and get quotes from different companies.  Be sure to get quotes from at least 3 companies.  Put them to work for you and see what they can do to get you the lowest rates. 

Factor 2 – Risk.  Every homeowner’s insurance policy is going to have a deductible.  That is the amount of money you will have to pay on a claim before the insurance company kicks in and starts paying.  There’s no such thing as 100% coverage (that is with no deductible).  Now, if you will take on a little more risk by raising your deductible, the insurance company will lower your monthly premium rates.  You may be surprised at how much you can save this way.

Factor 3 – Theft.  One of the major concerns of insurance providers is the threat of break-ins and theft.  If you can take steps to reduce the threat of theft, you can get lower insurance rates.  As much as 10% is discounted for installing a home security system.  Insurance companies know that the presence of such systems lower the probability of your home being broken into.  You may also be able to enjoy discounts if you install dead bolt locks or join a neighborhood watch association.

Factor 4 – Safety.  Insurance providers also reward homeowners for safety features.  Centralized fire alarms (often included in home security systems), fire extinguishers, and automatic sprinkler systems are some examples of such safety features. 

Factor 5 – Discounts.  Savings are to found by taking advantage of offered discounts from the insurance companies.  These can come in a variety of forms.  Combining insurance coverage with the same company (auto and home, for instance) often lowers premium rates.

You may also gain discounts from professional, business, or alumni associations or groups.  Discounts can also be achieved by staying with the same company for a certain number of years or going for specified amount of time without filing a claim. 

Factor 6 – Credit.  A good credit rating is important even for getting the best insurance premium rates.