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Save money on your home insurance policy

July 2, 2014

There are several methods to limiting your expenses when it comes to home insurance. The first item you should consider adjusting is your deductible.

Your deductible is the amount you must pay before your insurance policy surfaces to pay the claim. That means if you have a $500 deductible, you'll have to pay that amount before your insurer will contribute to your claim.

Home security features can lower your insurance costs.
According to the Insurance Information Institute, most insurers recommend consumers to have a deductible of $500 or more. If you're in a financial situation where you can take on a larger deductible or an unfortunate event were to occur, you might want to consider a deductible of $1,000.

Get Rich Slowly reported a deductible of $1,000 can save you as much as 25 percent on your annual insurance premium. The money advice blog also reported that you might have more than one type of deductible. If you live in a disaster-prone area—one susceptible to hurricanes or earthquakes, for example—your policy could have separate deductibles for specific damage.

Don't underinsure your home

According a recent survey from Consumer Reports, one in 10 respondents who filed claims found out they didn't have enough coverage, which slashed into their checking accounts.

Consumer Reports recommends that homeowners ask their insurance providers to estimate a home's replacement cost. In order for homeowners to safe guard themselves against the climbing price of labor and materials that can follow a natural disaster, purchasing an extended-coverage rider can add up to 30 percent on top of your replacement value limit.

Package your plans

If you are a home and car owner, it's wise to check with your insurance provider to consolidate your claims. Consumer Reports stated that one in seven of its readers weren't packaging their car and homeowner insurance policies, which can save costs up to 30 percent. Check with your auto and home carriers to see what savings each can offer by consolidating your insurance needs with the best one.

Install security features?

Your insurer might offer discounts if you put security features in your home. According to a report from the FBI, burglary victims lost around $4.6 billion to property damage and theft in 2009. If you install a security alarm or deadbolt lock on your front door, you can save at least 5 percent, according to the Insurance Information Institute.