50 Ways to Save on Home Insurance

1. Shop around. You’ll hear it time and time again, but shopping around and comparing different home owner insurance companies and their policies really is the first step to find low-cost home insurance.

2. Look for group insurance. Whether it’s provided by your employer or an organization to which you belong, group insurance is generally cheaper than individual insurance.

3. Seek private insurance. If you live in a high-risk area, you probably have access to government insurance; however, this doesn’t mean you shouldn’t try to find a private company. You may get a lower homeowner insurance policy.

4. Make sure the company is licensed in your state. Insurance companies that aren’t licensed to do business in your state can get away with almost anything. Why? They don’t have your state’s insurance department to answer to. You run the risk of getting ripped off if the company isn’t licenses in your state.

5. Contact your state’s department of insurance. Not only can your state’s department of insurance offer suggestions for saving money, as well as which companies may suit you best, but they can also give you a heads-up on insurance companies you should avoid.

6. Speak with the Better Business Bureau. The BBB can let you know about any complaints that have been filed against the homeowner insurance company you’re considering.

7. Check the company’s financial rating. An insurance company with a strong financial rating is more likely to have you covered in an emergency, as well as less likely to go bankrupt. Check with independent research companies for financial ratings of the insurance companies you have in mind.

8. Purchase multi-line insurance. If your auto insurance company offers homeowner insurance too, you may save a few bucks by purchasing both policies.

9. Look into discounts for retired folks. Retired people are more likely to be home than folks who work nine-to-five jobs, run errands, take kids to football practice, and chaperone school dances. Insurance companies know that people who are home often are more likely to catch a fire – or thief – before major damage is done.

10. Ask for information on all discounts. Discounts can vary from company to company, so find the insurance company that offers the most discounts that will benefit you.

11. Examine your credit history. If your credit history is in pretty good shape, you probably don’t have anything to worry. If it could use some work – work on it! Insurance companies may use your credit score when determining your homeowner insurance policy quote.

12. Be faithful to your insurance company. Your insurance company appreciates your business, and sometimes they thank you for sticking around for a while in the form of special discounts.

13. Ask about EFT payments. Some insurance companies actually charge a fee for payments by mail. Avoid this fee by using electronic funds transfer – your homeowner insurance payment will go directly from your bank account to your insurance company.

14. Don’t purchase too much insurance. Two very important ways to avoid purchasing too much insurance are reviewing your policy and insuring only your home and not your land.

15. But don’t ignore floater policies. Sometimes, floater policies are necessary. You may want more coverage than the homeowner insurance policy offers. Rather than let your favorite fur go uninsured, ask about a floater policy.

16. Look into flood insurance. Flood coverage doesn’t come with standard homeowner insurance policies. If you live in a flood prone area, contact FloodSmart.gov for flood insurance. Otherwise, you’ll pay more money to repair or replace your home yourself.

17. Consider earthquake insurance. The same goes for earthquake coverage. If you live in the earthquake prone state of California, contact the Earthquake Authority.

18. Avoid sacrificing coverage for price. We all want the best price for whatever we purchase. Sometimes it’s easy to get caught up in low numbers and forget about the coverage your home and possessions really need. Don’t choose a particular homeowner insurance policy just because it’s the cheapest; in the end, you could end up paying a bundle out-of-pocket.

19. Raise your deductible. Paying a higher deductible means paying a lower premium. This is especially wise for people who don’t live in areas prone to theft or serious weather conditions.

20. Review your policy annually. Look over your policy each year to make sure you’re not paying coverage for an item you no longer possess. This is also a good time to find out if you’re eligible for any new discounts.

21. Contact your agent when you make repairs. When you repair or replace an element of your home, your home is safer. Safe homes earn lower homeowner insurance premiums.

22. Contact your agent with any possession changes. Whether you’ve purchased a new, expensive item or given away or sold an expensive item, you need to tell your insurance agent. This change could lower, or raise, your rates. Of course, you don’t want to raise your rates, but you don’t want to spend a fortune replacing the item, either.

23. Use fire-resistant materials. Whenever you do some construction work to your home, use fire-resistant materials – and tell your insurance company about it! They’ll love your safety-oriented way of thinking and they might just reward you with a discount.

24. Consider purchasing a brick home. When you shop for a new home, remember: brick homes hold up better against high winds. Your homeowner insurance company will know this little fact, too, and if your home is brick they may just cut your insurance costs.

25. Consider purchasing a wooden-framed home. At the same time, homes with wooden frames hold up better in areas prone to earthquakes.

26. Live close to help. Before you leave the Open House, find out if any police stations, fire departments, and fire hydrants are nearby. Homeowner insurance companies like it when you’re close to help. It means burglars and fires might not get too far.

27. Make sure your roof is tip-top. Repair your leaky roof, and replace it if the damage is too far gone. Shabby roofs don’t stand very much of a chance against storms, snow, and high winds.

28. Upgrade your plumbing. Copper is the best material for your plumbing system. If your home has a relatively new plumbing system, but it’s not copper, you may want to be cost-effective and cross your fingers for a few years. However, as soon as you can afford to, safeguard your home against water damage and upgrade to copper. It’s guaranteed for 50 years.

29. Inspect your electrical system. Make sure your electrical system meets the standards of code in your area.

30. Cover all electrical openings. Light switches and electrical outlets should have face plates. You may even want to use plastic guards to cover the outlets when they’re not in use. This helps protect curious, fork-wielding children from electrocution and you from liability cases.

31. Install an alarm system. Many thieves will avoid a home that has an alarm system sign in the yard, or seal in the window. If a burglar tries to break in, the alarm will sound. Not only will your homeowner insurance company be proud, but you will save your valuables.

32. Install dead-bolt locks. Make it difficult for thieves to break in.

33. Swap your doors for thicker, stronger ones. Make it even more difficult for thieves to break in. Plus, stronger doors hold up better against severe weather conditions.

34. Replace your old, drafty windows with sturdier ones. New windows are safer against high winds, and some materials will hold up better when hit with flying debris – or a thief’s baseball bat.

35. Install shutters or window covers. Window covers offer even more protection for your windows – and your home – when the weather gets rough.

36. Reinforce your garage door. Or replace it, if necessary. Severe storms and hurricanes will rip right through an old, shaky garage door.

37. Store your valuables at the bank. If you own antiques, expensive jewelry, rare coin collections, etc., you can cut the cost of homeowner’s insurance, as well as prevent having to buy a floater policy, by keeping your valuables in a safe deposit box at your bank.

38. Make sure every room has a smoke/fire detector. Fire detectors are inexpensive ways to make sure every room in your home is covered. Check the batteries often and replace them as needed.

39. Look into fire sprinklers. If the rooms in your home are relatively big, installing fire sprinklers is the perfect way to cover all areas ablaze. Fire sprinklers are especially ideal for folks who don’t live near a fire station.

40. Purchase enough fire extinguishers for your home’s size. Fire extinguishers are the beginning cook’s best friends. If you live in a one-bedroom, single-level condo, one extinguisher may be sufficient. Larger homes obviously need more than one.

41. Mount everything securely. Whether you live in an area prone for hurricanes or have small, rowdy children in your home, it’s always best to make sure everything hanging on your wall is mounted securely.

42. Remove outside debris. Debris includes trash, boxes, old car parts, scraps of wood and metal, etc. These objects are safety hazards for visitors and for you should a storm blow them through your windows. Protect yourself from liability cases and insurance claims.

43. Take a hammer to wobbly porch steps. Wobbly porch steps, loose banisters, and anything else, both inside and outside your home, pose health dangers to you and company.

44. Repave your walkways and driveway. Family members, friends, and other visitors use your walkways and driveway, and any holes, loose concrete, or other damage could cause them to trip, fall, or harm their vehicles.

45. Pay attention to your landscaping. This is especially important for people who live in areas prone to bad weather and earthquakes. Check with your city’s building code, or state’s department of insurance, to find tips on close – or far away – trees and other plans should be to or from your home.

46. Think about your pets. Insurance companies are very careful about offering homeowner insurance policies to people with certain pets – especially dogs. Dog attacks cause a great number of homeowner liability insurance claims. And don’t try to fool your insurance company – if your dog causes harm to another person, you may end up facing a liability suit alone.

47. Give up the smokes. Insurance companies know that smoking is dangerous to your health as well as your home. If you’re a smoker, they see you as a greater risk to insure, regardless of how many smoke alarms and fire extinguishers you have.

48. Hire an exterminator. Of course it’s nice to get rid of the bugs and other pests in your home, but considering the great deal of damage termites cause you’re also doing your home – and your pocket – a favor by getting rid of them.

49. Lock it up. Lock up anything potentially dangerous inside and outside of your home. This includes liquor, medicine, and gun cabinets, as well as the fence around your pool (build one if you don’t have one) and your tool shed.

50. Don’t procrastinate. Any repairs and replacements your home needs must be done immediately. Putting them off could cause damage to your home and your company – not to mention yourself. If you can do it today, do it today.