45 Sure-Fire Ways to Save Money on Your Homeowner's Insurance

Unless your home is being financed and you have a mortgage on it, no one is forcing you to buy homeowner's insurance – and yet the vast majority of Americans do choose to purchase this insurance even after they have paid off their mortgage and are not required to maintain this monthly expense any longer.

Why?

For most people their home represents their biggest investment and their most valuable asset. Protecting this asset makes perfect economic sense. And the best way to protect your home is by buying homeowner's insurance.

Even though, given the choice, most people do choose to pay for homeowner's insurance, that doesn't mean that anyone wants to pay any more than they absolutely have to in order to cover the replacement value of their home and its contents.

So – here are 45 tried and proven methods for saving money month after month, year after year on your homeowner's insurance:

1. Don't Insure the Land – Many people make the mistake of including the value of the land on which their home sits in the calculation of how much insurance they need to purchase. Insuring your land against a natural disaster is throwing your money away.

2. Pay Your Bills on Time – Many people are not aware that their credit rating plays a role in how much they pay for homeowner's insurance. Insurance companies have discovered that people with a high credit score make better risks – so do everything you can to maintain your credit rating.

3. Pay Premiums Yearly – It costs your insurance company more money to send you 12 bills in the mail each year than it does if you pay all of your yearly premiums at one time – and so they pass along the savings to you if you pay your premiums on a yearly rather than a monthly basis. In some cases you may be able to save the equivalent of one month's payment each and every year.

4. Make Your Home's Exterior Fire Safe – A large portion of your homeowner's insurance premium is based on how fire safe your home is. Simply by cutting back weeds and brush 10 feet from your home and any other structures on your property you can reduce your monthly premium.

5. Add Motion-Sensitive Lighting – Adding motion-sensitive lighting around your home discourages burglars, and since burglaries are one of the largest expenses for home insurance policies, preventing burglaries can lower your monthly premium.

6. Dead-Bolt Every Exterior Door – Placing a dead-bolt lock on all exterior doors reduces burglaries and at the same time reduces your monthly homeowner's insurance premium.

7. Window Locks – All windows, regardless of which floor they are on or how difficult you think it would be for a burglar to reach them, need to have a working lock. Again, preventing burglaries will reduce your homeowner's insurance premium.

8. 24-Hour Fire And Burglary Monitoring – A home security system that's monitored 24/7 for fire and burglary can reduce your homeowner's insurance by up to 30% -- plus give you a great deal of peace of mind.

9. Smoke And Fire Detectors – Having the proper number of fire and smoke detectors installed for the size and configuration of your home can help reduce the cost of your homeowner's insurance. Remember to change the batteries twice each year – each time you set your clock forward or backward an hour.

10. Kitchen Fire Extinguisher – At the very least you need to have a fire extinguisher easily accessible in your kitchen. The extinguisher needs to be of the proper type and size for your kitchen.

11. Increase Your Deductible – Increasing the deductible on your homeowner's policy from $500 to $1,000 can save you as much as 25% on your monthly insurance premium. Over the course of several years this could easily cover your deductible payment. However, consider carefully any increase in your deductible as you will be asked to pay your deductible out of your own pocket whenever you file a claim.

12. Buy All Of Your Insurance Policies From the Same Company – buying all of your major insurance policies -- homeowner's, health, car, life etc. – from the same company can result in significant savings through what is known as a multi-policy discount.

13. Make Your Home More Disaster Proof – Fire and burglary aren't the only things that affect the price you pay for your homeowner's insurance. Adding storm shutters for wind protection, adding a heavier roofing material, or retrofitting for earthquake protection can all reduce your monthly premium. Check with your agent for the savings you would realize and then determine its cost-effectiveness over time.

14. Check On Group Coverage – Some employers and some organizations offer their employees or their members a discounted group homeowner's insurance. If you have the opportunity to purchase your insurance as part of a "buying club" you may be able to save on your premiums for years to come.

15. 55 And Older Discount – Ask your insurance agent if your homeowner's insurance offers a discount for homeowner's who are 55 and older and who are retired. The reasoning behind such discounts is that retired people are home more and so are less likely to be burglarized and are more likely to be able to put out any fires that may begin. Not all companies offer this discount, but it doesn't hurt to ask.

16. Long-Term Discount – If you've had the same homeowner's insurance company for several years you may be entitled to a long-term discount of up to 10% if you've stayed with the company 6 years or more. Even staying with a company 3 to 5 years can qualify you for a discount. Don't stay with an insurance company if you can find significantly better rates elsewhere, but if you've stuck it out for 5 years or longer it won't hurt to ask if you qualify.

17. Review Your Policy Once a Year – A portion of your policy premium goes to cover your possessions. The value of your possessions may depreciate as time goes by. A mink coat that was once worth $5,000 may no longer be worth that much. Many other possessions lose value over time as well. Reviewing your policy once each year allows you to make whatever adjustments are necessary to reflect the passage of time.

18. If You Have Government Homeowner's Insurance – Many people who live in high-crime areas or in areas subject to severe weather may have purchased homeowner's insurance from a government agency in years past. Sometimes the government agency does provide the best coverage at the best price, but a number of people are coming to the realization that private companies in these same areas are now offering more insurance coverage at far less cost than the government's programs.

19. When Buying a Home Ask Questions First – Did you know that buying a home near a fire hydrant can save you money each month on your homeowner's policy? Did you know that buying in a town with a full-time fire department can save you money over buying in a town with a volunteer fire department? Before you buy a home ask for a CLUE (Comprehensive Loss Underwriting Exchange) report; it should alert you to possible insurance problems.

20. Don't Smoke – it's true. Approximately 23,000 household fires each year are caused by smoking. Non-smokers get a discount on their homeowner's insurance. If you smoked at the time you bought your policy but have since quit smoking you may be entitled to a review of your policy and lower monthly premiums.

21. Modernize Your Electrical, Plumbing and Heating System – Older electrical, plumbing and heating systems make your home more prone to fire and even flooding. Upgrading your systems will not only improve the overall value of your property but doing so can also save you up to 15% on your monthly homeowner's insurance bill.

22. Ask Your Agent for Any Undisclosed Discounts You May Be Entitled To – it may seem like a no-brainer, but how many of us actually take the time to ask our insurance agent what discounts are available that we might conceivably qualify for? Each insurance company has a whole list of seldom-seen and seldom-mentioned discounts that can potentially save you hundreds of dollars each and every year. Sometimes the only way to learn about these discounts is to point-blank ask.

23. Pick The Correct House Type – if you are buying a home keep in mind that the kind of home you buy can save you as much as 5 to even 10% on your monthly premium. If you live on the east coast buying a brick home that's resistant to high winds can earn you a break on your insurance premiums, and if you live on the west coast, where earthquakes are a possibility, buying a wood frame home that stands up to quakes better can save you money on your homeowner's insurance. Purchasing a home that is not subject to flooding can save you $400 a year on flood insurance.

24. Choose Your Perils Wisely – Most homeowner insurance policies offer a package of perils that you can insure against. Not all perils apply to every home or to every area of the country equally. By carefully choosing the perils you will insure for and excluding those that are only remotely possible you can save a great deal on your monthly premium.

25. Institute a Neighborhood Watch – Neighborhoods with a Neighborhood Watch Program often qualify for lower homeowner's insurance costs. If your neighborhood doesn't already have a Neighborhood Watch, see about instigating one yourself.

26. Fire Escapes – Check with your insurance agent but many companies offer a discount on your homeowner's policy if you have taken steps to provide for fire escapes, especially from upper stories. Simple rope ladders attached to upper story windows may qualify you for a small discount.

27. Tell Your Insurance Agent About Home Improvements – Many times homeowners make improvements to their property, sometimes not even thinking in terms of reducing their homeowner's insurance, and they fail to mention these improvements to their insurance agent. Talk to your insurance agent any time you make a repair or improvement to your property – many improvements can reduce your homeowner's insurance even when that wasn't your intent.

28. Automatic Premium Payments Can Save You Cash – Setting up your account so that your monthly premium payments are automatically transferred from your bank or credit card can save you both time and money when it comes to making your premium payment.

29. Detached Garage – Typically garages contain oils and flammable liquids such as gasoline; this makes garages a bad risk for fires. Therefore, if you have a detached garage your homeowner's insurance can be slightly less – if you have a detached garage make certain that you tell your agent.

30. Beef Up Your Roof – Adding heavier shingles or taking other measures to strengthen or improve the quality of your roof can significantly reduce the cost of your homeowner's insurance, especially if you life in areas prone to high winds or other weather phenomenon that can damage a roof.

31. Update Your Plumbing and Appliance Connections – the most common claim against a homeowner's policy is not actually fire or burglary – it's water damage. Upgrading water lines and, especially, water hook-ups to appliances can greatly reduce your chances of a water rupture and can save you money month after month – be sure to let your agent know of any upgrades you perform.

32. Modify Your Liability Coverage – if someone is hurt on your property you could be sued. The liability portion of your homeowner's policy protects you against most lawsuits. However, most people can realize a substantial savings on their insurance by greatly reducing the liability portion of their homeowner's insurance and replacing it with a less-expensive "umbrella" liability policy. Talk with your agent for details as to how this works.

33. Make Repairs Around the Property – loose decking or railings, cracked or uneven walkways…anything that can cause a liability issue will increase your homeowner insurance premiums. Making repairs around the home to make the home and your property safer can help to keep your insurance premiums in line.

34. Keep Trash Cleaned Up – Trash should be kept at a minimum on the property for a number of reasons – both because it can pose a fire danger and because trash can potentially cause accidental injury which can lead to liability claims against the property. Old tools, machinery, and scrap metal are especially dangerous from a liability standpoint.

35. Keep Dogs Fenced In – Dog bites account for approximately one third of all homeowner liability claims and cost insurance companies over $1 billion annually. Keeping your dog in a fenced area away from casual contact with strangers and visitors on your property can help keep your premiums low.

36. Don't File Frivolous Claims – Be certain that any claim you make against your homeowner's insurance is both a valid claim as well as a worthwhile claim. Excessive claims can cause a property to be assessed a higher premium than an identical property with fewer claims.

37. Install a Sprinkler System – although it can be initially expensive, installing a sprinkler system for fire suppression can result in a long-term reduction in your homeowner's insurance. Amortizing the cost over several years may make this expense seem more attractive. Be certain to ask your insurance agent about possible savings before starting such a major project.

38. Know Who You Are Dealing With – picking the lowest homeowner's insurance quote sounds good when you're paying your monthly premium, but what happens if and when you need to file a claim? Will your insurance company still be there? Before you pay for a policy check out the rating of the company you are buying from.

39. Replace Regular Windows With Shatter-Proof Glass – replacing normal window glass with shatter-proof glass makes your home more resistant to such things are wind and hail storms. Let your insurance agent know that you have installed shatter-proof glass in order to receive the savings you deserve.

40. Named Peril vs. All Risk – In some places you may be offered two different types of homeowner's insurance policies, an All Risk Policy or a Named Peril policy. A Named Peril policy only protects your home against the specific perils named in the policy. An All Risk policy insures your home for all possible risks except for specified risks that are specifically excluded. While a Named Peril policy is cheaper, care must be taken to make certain that sufficient risks are covered.

41. Know What's Excluded Before You Buy – You probably know that homeowner's insurance does not cover flood damage, but before you spend one penny on your homeowner's policy you should be aware of any other exclusions your policy has. Often a policy can be made to seem very affordable and it isn't until it's too late that you discover the reason your policy was so inexpensive is that it did not cover a peril that you took for granted was included.

42. Be Aware of Deductibles Ahead of Time – Deductibles can be different for different risks in different parts of the country and generally speaking the higher deductibles are for the very risks you though you were getting insurance to protect you from in the first place. For instance, wind and water damage deductibles are far higher in Florida than in California, and earthquake deductibles are far higher in California than they are elsewhere. Ask questions before you need to file a claim so that there are no nasty surprises once a disaster has already struck.

43. A Swimming Pool May Be Nice But – A swimming pool in your own backyard may be one of your dreams, but keep in mind that from an insurance point of view a swimming pool is a potential liability insurance nightmare and homes with pools add substantially to your monthly insurance premium.

44. Landscaping Isn't Just For Looks – Landscaping your property, smoothing out hilly places and filling in hard-to-see holes and eliminating clutter that could result in injury to an unsuspecting house guest can not only add to the beauty and to the value of your property, but can also help to reduce the liability portion of your homeowner's insurance. Be sure to talk to your agent about any landscaping measures you have undertaken or are planning to discover the steps you can take to get the most insurance-benefit for your landscaping dollar.

45. Shop Around – Finally – shop for the best deal possible. The cost of homeowner's insurance can vary by hundreds of dollars each year from one company to another. The internet is filled with sites that allow you to compare policies and prices between various insurance companies. Just remember that no website compares every insurance company's prices – if you want to find the best deal you need to compare prices on at least 3 separate sites. Keep in mind, too, that a low price shouldn't be your only consideration. Check out the stability of the company and its rating so you can feel confident that if and when the time comes for you to file a claim that the company you have chosen will still be there for you.