Save Money on Home Insurance

Homeowners insurance can be expensive. As an informed consumer, you can reduce the amount you pay to insure your home. This article provides several tips to help you save money on your homeowner’s insurance.

Check the Type of Construction

The cost of your homeowner’s insurance is dependent on the type of construction of your home. The more fire-resistant your home is, the lower your insurance rate. Brick homes are less expensive to insure than wooden homes. Brick can include stone, stucco, and even some forms of fire-resistant siding.

Unfortunately, it is common for insurance companies to have the wrong construction type listed in your insurance policy. This error is often due to the local tax assessor or government misclassifying your home or a clerical error. This can cause you to pay too much to insure your home.

Check the Location of your Home

Your homeowner’s insurance cost is also based on where your home is located. Insurance companies divide the map into territories. The losses experienced by these territories are used to compute the rates for houses in the territory. You will pay more for your homeowner’s insurance if your house is located in a territory that has experienced or is likely to experience substantial losses.

These territories change over time. You may find that the territory for your house has changed, even though your policy has not been updated to reflect the change. This is another reason why many of us pay too much to insure our homes.

Change the Type of Policy

There are a number of different types of insurance policies. Each policy has different coverages and, as such, has different pricing. Generally, the HO-3 policy is more expensive than the HO-2 policy. The HO-5 policy is usually the most expensive policy.

You can save money on your home insurance by simply checking to make sure that you have the correct type of policy for your circumstances.

Change your Deductible

The amount of your deductible also impacts the cost of your homeowner’s insurance. The higher the deductible, the lower the cost of your insurance. You can reduce the cost of your policy by increasing the amount of your deductible.

Improve your Credit History

Insurance companies use your credit history to determine your insurance score. Your insurance score is then used as a predictor of your likelihood of filing a claim. Those with lower credit histories tend to file more claims. Lower credit history equates to a higher cost for homeowner’s insurance. As such, you can reduce your homeowner’s insurance cost by improving your credit history.

Take Advantage of Discounts

Many insurance companies offer discounts on homeowner’s insurance. These discounts are often based on a number of factors, such as you having smoke and fire alarms, fire extinguishers, and dead-bolt locks. You may also be able to get a discount for having your car insured with the same insurance company. These discounts can significantly reduce the cost of your homeowner’s insurance policy.

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