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How can I reduce the cost of my homeowners insurance?

There are many ways you can save on the cost of your homeowners insurance premium, with some possibilities existing within the policy itself. Most insurance companies offer several different credits for certain characteristics and circumstances. Your state may offer discounts, as well.

Insurance rates will vary depending on the home construction and location. The more fire-resistant the building materials, the lower the rates will be. Brick homes have lower rates than wood-frame homes. Rates are also affected by how close your home is to a fire hydrant. The town in which you live affects the rates, with each town being graded by the state or the insurance company. The grades reflect proximity to the closest fire department, road accessibility, congestion, and other characteristics that would affect the fire department's ability to get to a house fire quickly.

Insurance companies will often issue credits to their customers for the following:

  • Having protective devices, such as smoke and burglar alarms
  • Homes that are less than 15 years old
  • All occupants in the home are nonsmokers
  • Insuring both your auto and home with the same company for a multiple-policy discount
  • Renewing the policy with the same company

Selecting a higher deductible and reducing or omitting coverages can also help you save money. Check your policy to be sure you're not being charged for insurance coverage you don't need. Some states offer credits in partnership with insurance companies and businesses. For example, you could attend a state-sponsored home safety workshop and receive a credit on your homeowners premium or a discount at participating home supply stores. Ask your insurance agent or insurance company for further information.