How to Save on Home Insurance

A home insurance policy is important for anyone who owns their own home and is one place to look to save money. Saving money on home insurance can be done by knowing how the premium is being calculated, discounts that are available and adjusting coverages and the deductible. Saving money on a home insurance policy is hard to do when a higher rate is being applied to the policy.

In order to save money on a home insurance policy it is important to have an understanding about how the premium is being calculated. The premium charged for a particular insured is based on many different factors that are the same for various insurance companies. Many insurance companies use the age of the house as well as when the utilities have been updated as a factor in the premium. Most all insurance companies also use an individual’s credit score and age as another factor that goes into the premium. However, some states only allow the use of a credit score as a discount on the policy. The distance from a fire station or hydrant is also a factor in the amount of the premium

The best and easiest way to save money on a home insurance policy is to find all of the discounts that can be applied to the policy. Discounts are provided for having protective devices such as a smoke alarm, a dead bolt lock as well as a fire extinguisher. A discount can also be applied if an individual is a non-smoker or belongs to a group such as an alumni association. Discounts are designed to lower the cost of the premium because they are seen as decreasing the risk to the insurance carrier. Discounts are also a way to offset any changes that are made to coverage limits as well as the deductible. They are also a good way to get the most out of a policy for the amount of premium that is paid.

Another way to save on the cost of home insurance is to adjust the coverages and the deductible on the policy. It is important to remember when determining the amount of coverage on a policy not to pay for coverage that is not needed. Coverages can be increased or decreased to any amount that is based on the specific needs of the insured. Raising the amount of the deductible can also help to save money on a home insurance policy. The deductible on a homeowners policy can range from $250 up to $1000 or more depending on what the insured is willing to pay. Since the deductible is paid before any insurance kicks in a higher deductible is less the insurer will have to pay out.

Saving money on a home insurance policy gets harder to do when a higher rate is being applied to the policy. This can be caused by many factors including any claims that have been made on the insurance policy. Unless it is absolutely necessary insureds should only submit claims for the most significant losses or damage. If an insured makes too many claims over a certain period an insurer can raise their rates.