Part 2: Get the Most From Your Insurance While Still Keeping Your Home Protected

1. Consider Your Deductible

If your policy includes a low deductible, consider raising it — a higher deductible will almost always mean a reduction in your monthly premiums. While many insurance companies recommend a $500 deductible, raising your deductible to $1,000 can reduce your annual premium payments by as much as 25%. 

Whatever your deductible is, try to make sure that you have set aside that amount in an emergency savings fund to cover any out-of-pocket expenses in the event of disaster or accident.

2. Research Discounts

Many insurance companies offer discounts to its customers — call your agent to see if you qualify for any, such as

• loyalty— maintaining an active policy with the same insurer for multiple years can result in discounts from 5 to 10 percent
• claim-free— if something occurs that is small (less than or just a bit more than your deductible), consider not filing a claim as many insurers offer discounts to customers for every year they have been claim-free
• policy bundles — many insurers offer discounts anywhere from 5 to 15 percent off your total combined premium if you purchase two or more (e.g., auto and home) policies from them
• non–smoking — some insurers offer a discount to households with no smokers

3. Improve Your Home

The more robust and secure your home, the less risk it presents to the insurer — when you’re considering a home improvement project, don’t forget to call your agent and find out if the project will have any impact on your premiums (and if you’ve received all the discounts your home qualifies for):

• security— sturdy locks, a monitored alarm system, fire extinguishers in your home and smoke detectors can all result in lower premiums
• weatherize — in heavy weather areas, home insurance can run 25% more than the average in the rest of the country; if you live in areas known for hurricanes, tornadoes or earthquakes, installing earthquake bracing, hurricane shutters and/or hurricane straps can result in a significant reduction in your premium
• update — if you’re considering upgrading the infrastructure of your home, such as replacing an older electrical system, you may qualify for a reduced premium

Resources for Money-Saving Tips on Your Home Insurance

• How to Save Money Through Homeowners Insurance on The Nest
• Saving Money on Home Insurance on The Frugal Toad
• How to Save Money on Homeowners Insurance on 360 Degrees of Financial Literacy
• Remodeling? Renovate your insurance from The Chicago Tribune
• 12 Ways to Lower Your Homeowners Insurance Costs from the Federal CitizenInformation Center
• Homeowners and Renters Insurance on Insurance Information Institute