Special Report:
Saving Hundreds on Home Insurance: True Home Costs, Part II
How To Save Hundreds On Home Insurance |
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| 1. Home security upgrades. | Save up to 15-20%. Get dead-bolt locks and a burglar alarm (preferably one that’s monitored 24/7). | |
| 2. Fire-fighting upgrades. | Save up to 10%. Fire alarms and extinguishers are worthwhile. A sprinkler system is an excellent (but costly) upgrade. | |
| 3. Raise your deductible. | Save 15-25%. Raising your deductible can save big money, especially if it’s currently lower than $200. | |
| 4. Drop unneeded coverage. | Save up to 20%. Eliminate any “riders” or “floater” clauses that cover unlikely losses. Insurance should cover no more than the rebuilding cost — don’t include the value of the land. | |
| 5. Shop around. | Save up to 20%. Home insurance prices from different companies can vary widely, so shop around for a lower rate at sites such as InsWeb.com, MostChoice.com and NetQuote.com. | |
| 6. Loyalty discounts. | Save up to 20%. Most companies offer a longevity discount for people who stick with them. Often it’s a 5% discount for staying 3-5 years, and a 10% discount after six years. Retirees often get an additional 10% discount. | |
| 7. Avoid risk. | Avoid anything that increases the risk perceived by your insurer (for example a lower credit score, or keeping a dangerous pit bull, or having an accident-prone swimming pool.) | |
| 8. Claims-free discount. | Save 10-15%. If you avoid burglaries and don’t make an insurance claim for three to five years you may get this discount. | |
| 9. Block watches. | Save 5-10%. If you organize a block watch, insurance rates and the crime rate will both go down in your neighborhood. | |
| 10. Live in a safe home. | Save up to 20%. Newer homes have fewer problems. In windstorm-prone areas, consider brick homes; in earthquake zones, wood frames stand up better. Avoid flood-prone areas. | |
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