How to Save on Your Home Insurance

Shop Around - Check with several different home insurance companies to get rate quotes (an independent insurance agent can provide rate quotes from a variety of companies). Do your friends or family members like their home insurance company?

Buy insurances from the same insurer - Buy your home and auto policies from the same insurer. Many companies will give a multiple discount if you buy both home insurance and auto coverage from them.

Consider a higher deductible - Increasing your deductible by just a few hundred dollars can make a big difference your premium. Make sure you can afford to pay the higher deductible out of pocket if something should happen.

Cost of homeowners insurance - When you're buying a home, consider the cost of homeowners insurance. You may pay less for insurance if you buy a house close to a fire hydrant or in a community that has a professional rather than a volunteer fire department. It may also be cheaper if your home's electrical, heating and plumbing systems are less than 10 years old.

Insure your home, not the land - While your home and its contents are at risk from fire, theft, windstorms, and other perils, the land your home sits on is not. Don't include the value of the land in deciding how much home insurance you need to buy. Your agent can help you assess the coverage you need.

Don't make confusion - Don't confuse what you paid for your house with rebuilding costs. The land under your house isn't at risk from theft, windstorm, fire and the other perils covered in your homeowners policy. So don't include its value in deciding how much homeowners insurance to buy. If you do, you will pay a higher premium than you should.

Ask your insurance agent about discounts - You may be able get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire retardant roofing material.

Look for senior discounts - Insurance companies have found that retired people stay at home more and spot fires sooner than working people. Older people also have more time for maintaining their homes. If you're at least 55 years old and retired, you might qualify for as much as a 10 percent discount.

Look for group coverage - Large employers and alumni and business associations often work out insurance deals with an insurance company, which includes a discount for employees and members.

Improve security and safety - Items such as dead bolt locks, burglar alarms, and smoke detectors can usually bring discounts of 5 percent each, depending on the company. Your insurance company may also offer a significant discount of 15 or 20 percent if you install a sophisticated home-security system. If you're thinking about buying such a system, check with your insurer to see which systems you'll get a discount for.

Stay with the same insurer - If you've kept your coverage with a company for several years, you may receive a special discount for being a long-term policyholder. But make certain to periodically compare this price with that of other policies.

Check your policy annually - You want your policy to reflect the value of your home and belongings. If you review your policy every year, you will be able to make the necessary adjustments. If, for example, you just sold a valuable painting, you won't to need the same amount of personal property coverage. But if you've added a garage, you'll need to increase your dwelling coverage.