Cutting Home Insurance Costs in a Bad Economy

Your home insurance costs may not come to mind when you are trying to save money, especially if your premium is part of your monthly payment. But in today's economic environment, your insurance costs should be one of the many expenses that you review. Why? Because there is the possibility that you can cut those costs without sacrificing protection.

Here are some questions to ask yourself about your current homeowners insurance policy:

1) Am I getting all of the discounts I'm qualified to receive?

Home insurance companies offer their customers discounts for a variety of reasons. Many times they give discounts if you decrease the risk of a loss. For example, you could receive a discount on your premium if you install a burglar alarm or have deadbolt locks.

You can also receive a multi-policy discount if you insure your vehicles with the same company that insures your home.

2) Can I handle a larger deductible?

The deductible is the amount of money you have to pay before the insurance coverage kicks in when you make a claim. The amount of your deductible also affects your premium. A lower deductible means you will pay more on your premium. Consider increasing your deductible to cut home insurance costs. Of course, you'll want to be sure you can come up with the deductible if you file a claim. One idea is to put the extra money you save on a lower insurance premium, into a savings account which you can pull from in the event of a claim.

3) Am I getting the best rate?

Insurance companies change their rates over time, and rates are different between companies. If you haven't shopped around and compared rates lately, you may be paying more than you need to for your coverage. You could save hundreds by doing some comparison shopping, time well spent. Use an online insurance comparison site to save you time.

4) Have I made any major improvements or purchases since I took out the policy?

Of course your life changes over time, and so does your insurance protection needs. Maybe you've added more stuff since taking out your policy, like home theater systems, computer equipment etc. You want to make sure it's adequately covered so contact your agent or company and ask. This may not save you money, but you wouldn't want to find out too late that something isn't covered.

Also, if you have made major home improvements you'll want to make sure they are covered as well. If these improvements include updated electrical, plumbing or roofing you may qualify for a money-saving discount.

Compare free home insurance quotes Justin Scott is a free-lance writer and recommends the comparison site LowerYourInsurance.com for up to five quotes on homeowners insurance. The site also features more tips about saving on home insurance.

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