How to Save Money on Homeowners Insurance Tips

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Do you have smoke and CO2 detectors?

Smoke Detectors & Insurance Discounts

The more effort you make to protect your home from damage the happier insurance companies will be. So make sure to have a smoke detector and CO2 alarm on each floor of your home. If you have flood protection through the government or a private insurance company, install flood detectors in your basement as well. These can be purchased by many alarm companies individually, or they can be included in a home security package.

Smoke detectors are proven to help prevent house fires and limit damage as well as personal injury. The more protection your home has from fire, smoke and water damage, the less your insurance against such threats will cost. This can help net you affordable home insurance.

Remember not to install smoke detectors directly above stoves/ovens. Otherwise it will likely go off when you are cooking. Place it somewhere where it is easy for you to get access to it so you can test the battery once a month and replace it when necessary.

Have you had your valuables appraised recently?

Rechecking Insured Valuables

At least once a year compare the value of you insured possessions/valuables and your home against the limits on your homeowner's insurance policy. Make sure that the limits on your plan are not drastically higher than the replacement value of your property.

When you check this each year, adjust the policy accordingly if necessary. That way you are not paying a higher monthly premium for a policy that provides more coverage than you actually need. Not checking your possessions against your policy limits is one major reason why people pay more than they should have to for insurance every year.

It is not the job of the insurance company to do this for you, and they won't. It is up to you to keep an eye out for ways to save yourself a buck or two. Over the course of however long you own your home, that extra money each month can add up to a sizeable amount. Suddenly you will have a much more affordable homeowner's insurance policy.

Have you looked into organization discounts?

Organization Discounts

Organize! Insurance companies often give discounts on homeowner's insurance to members of certain organizations. If you are a member of any groups like veterans organizations, non-profits, lodges, etc., you might be eligible for a discount. It never hurts to ask.

There are also employers and professional organizations that offer insurance through a particular company as well. Ask your boss and see if that will lead to the cheapest homeowner's insurance choice with the best protection.

Retirees are also likely to get an additional discount. This is because they are considered to be home more often than someone working 40 hours a week. So it may be easier for them to see and prevent things like fire and smoke damage before they are severe enough to warrant filing a claim. With some insurance companies the discount could be as high as 10 percent. But even a two percent discount should not be turned down. Every penny counts.

Have you looked into multiple policy discounts?

Multiple Policy Discounts

Most insurance companies do not limit themselves to providing one type of coverage. Many will offer life insurance, auto, dental and health as well as affordable homeowner's insurance. Rather than spreading your coverage out over several companies, find out what you would have to pay if you consolidated your insurance.

You should be able to get a significant discount if you have multiple accounts with one company, like auto, life and home insurance. Take a look at to see the benefits of using one company for your insurance needs.

Some cases might prove worth it, some might not. But at least you'll know for sure rather than continuing to pay more than necessary when you could have avoided it. Whenever you update your insurance policy on your home, ask them what their rates are like for other things and if there is a financial benefit to switching them over to one company.

Are you keeping your house in good condition?

Keep Up With Regular Maintenance

Normal wear and tear around the house is not covered by homeowner's insurance policies. If you have a leaky pipe that you put off fixing for months and then end up with severe water damage, you're out of luck. This is considered to be normal maintenance. Neglecting things until they are in disrepair and need to be replaced will not work, because under your insurance plan you are expected to keep up with regular maintenance.

So the better shape you keep your home in the better off you will be. Any claims that you file should be legitimate. You can run into several problems if you file an excessive number of complaints without merit that are rejected. If you want to save on homeowners insurance, a string of bad claims is not going to help.

Also, keep in mind what your deductible is and the cost of repairs/replacement. In some cases, it might be cheaper to pay out of pocket. And the more you stay on top of regular house maintenance the less often you should have to use your insurance.

Do you have a home security system?

Security Systems Lower Insurance Premiums

If you are hunting for affordable homeowner's insurance, installing an alarm system is a great place to start. For one thing, it makes your home safer and less vulnerable to break-ins and theft. When your insurance company sees that you use an alarm to protect your home, the perceived likelihood that your home may be burglarized is reduced.

The less vulnerable your home appears to be, the less you will most likely have to pay for your insurance policy. For the best home insurance discounts related to security, get an alarm system that is monitored by a security company 24/7.

The more visible the system is to outsiders, the better. Lawn signs, flood lights and window decals stating your home is protected by an alarm all help to deter break-ins. Insurance companies usually like this, and you'll be treated to lower premiums than you would without this system.

Should I go with a lower or higher deductible?

Deductible Vs. Premium

Your deductible is the amount that you agree to pay out of pocket whenever you file a claim with your homeowner's insurance provider. The higher your deductible is, the lower your monthly premiums will most likely be. The opposite also holds true.

This is something that you negotiate with your insurance company when you purchase a policy. Your deductible could be $250, $1,000 or just about any other figure. So if there is $10,000 worth of damage done to your home and your deductible is $1,000 you are only paying 10 percent of the total cost out of pocket. Your insurance company pays the rest.

When finalizing your policy, you need to figure out how much you can afford to pay in monthly premiums, then decide if you would like a higher or lower deductible. Usually this comes down to your month-to-month finances and what you are more comfortable with. So if you are looking to limit your monthly bills, a higher deductible is one way save on home insurance each month.

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William Pirraglia