by Erik Dodge

Created on: May 20, 2010   Last Updated: May 24, 2010

Prices for home insurance can vary by hundreds of dollars based on the insurance provider. Following a few simple tips can significantly reduce the financial burden of your homeowners insurance coverage. This way you can make sure you are sending more money to your bank account and less to the insurance company with each bill.

A. Shop around

Although it is not as quick as flipping a coin or drawing names from a hat, shopping around more than pays for the extra time spent with all the money you can save. Diving into the phonebook or asking friends is a good way to start. For more concrete information contact your state insurance department or visit the National Association of Insurance Commissioners website (

www.naic.org). Once you have narrowed your choices to around three, get price quotes.

B. Raise your deductibles

The amount of money you have to pay on a claim, before your insurance company begins to pay is your deductible. Raising your deductibles can lower your premiums by as much as 25 percent. Discounts generally start at $500 and increase with your deductible up to a $10,000 cap. Over time the discounts can save you more money than you spend on your deductable, but make sure to check with your lender before going much higher. Many mortgage companies do not allow deductibles of more than $1,000.

C. Consider insurance cost before buying a home

When purchasing a home there are an overwhelming amount of factors to consider. One that you will be happy you did not forget is the cost of home insurance. Small steps such as buying a house near a fire hydrant or in a neighborhood that has a professional, instead of a volunteer, fire department can save you as much as 15 percent on your premiums. Do not forget that standard homeowners insurance coverage does not cover some natural disasters, like earthquakes and floods, so you may need to purchase more specialized insurance if your home is at risk.   

D. Don’t insure land

Remember that the land your home is built on is not under the same threats of fire and theft as your home. When deciding how much home insurance to purchase do not include the value of your land. If you do include this value in your policy, you will pay far higher premiums than the amount that is necessary.

E. Increase home security

Installing a security system can make you feel and actually be safer. These systems make your insurer feel safer as well, and often discounts will be offered for installing one. Many companies also

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