How smart U.S. homeowners are keeping their home insurance costs low.

May 11, 2007 - PRLog -- Some homeowners have found ways to reduce their home insurance costs even as costs continue to rise and budgets get tighter and tighter with each passing year. Here are some of the things they are doing.

1. Increasing Home Security

Fitting their homes with security devices. This earns a Home Security Discount. They make sure their homes are fitted with such devices as dead bolt locks, smoke detectors, fire extinguishers, burglar and fire alarms that are monitored.

2. Keeping their credit scores high.

While it would seem that a good credit score would have nothing to do with insurance rates, it is a fact that they do. Home Insurance companies have been known to use credit scores indicators of responsibility. The theory is the more responsible the individual the less claims they will have. So, insurance companies are giving lower rates to those individuals with a better credit score.

3. Consolidating their policies.

These homeowners often purchase other forms of insurance from their home insurance provider, thereby earning higher discounts that save them up to 30% off of their total insurance bill.

4. Protect their homes with updates.

Discuss with your agent about the possibilities of receiving home insurance discounts for keeping your home in good repair. Some home insurance companies will offer savings for a anew roof, electrical, HVAC, plumbing updates. The discounts are generally not enough to warrant the replacement but if you needed it anyway, be sure to get the discounts if applicable.

5. They make sure they are not over insured.

Your home insurance coverage should not necessarily be what you paid for them home. Land values are calculated into the final sales price and should be considered when insuring the structure. In others words you cannot hurt the dirt. A good idea is to call local builders and ask them what new home construction cost per square foot is going for. Take that number, multiply that times your square footage and that is the amount that your home should be insured for. Companies will not pay more than what it is going to cost to rebuild the home anyway, so make sure you are insured correctly.

6. They stay away from low deductibles.


The deductible is your portion of the claim that must be paid before the insurance company pays for the claim. The lower your deductible, the higher your premium will be. Deductibles can range anywhere from $100-$5000 or more. The majority of homeowners will carry a $500 deductible, but the savings one can receive by raising your deductible to $1000 can be significant, up to 20%. It doesn’t take too many claim free years to make up the difference between the two deductibles, but remember you should never raise your deductible to a level that you could not afford to pay.

7. Asking their Home Insurance Agents

Most of the time, an agent will make sure that you are receiving 100% of the home insurance discounts that you qualify for, but it doesn’t hurt to ask. Some insurance companies have discounts that others do not. Some offer discounts that most would never dream as being a discount such as 55 and retired, non smoking, military service, law enforcement, single parent discounts, etc.

8. They are not afraid to shop Around

They use online companies that give them the ability to get multiple home insurance quotes. To get to one, please visit http://insureinfousa.blogspot.com. Also be aware that not all insurance companies are created equal. There are some bad ones out there but most, at worst, are pretty good. Getting the best price is great, but check up on the company offering you that price at reputable insurance rating sites like Moodys.com or AMBest.com.

Website: insureinfousa.blogspot.com