In today's economy we're looking for every way to lower costs. Insurance is one of those mysterious items with lots of big words and confusing language. Since most of us pay homeowners through our monthly mortgage payment we do not give it much thought. Getting educated on insurance can be very good for your budget.



1. Get Quotes From Several Agents

Insurance premiums vary by as much as 40% from company to company. It'll take a little legwork, but a few phone calls could save you hundreds of dollars per year on your insurance premiums. To save yourself all the time of phone calls you can quickly get several competitive quotes from an online service.

Don't be afraid to ask the insurance company for a better price. They may not give it to you, but the internet has made the business much more competitive. Ask them what they would do to lower your costs. Agents often have flexibility in pricing.

2. Increase Your Deductible to $500

A deductible is the amount of money you have to pay toward a loss before your insurance company starts to pay a claim. The higher your deductible, the more money you can save on your premiums and the greater your potential loss. If you can afford to raise your deductible to $1,000, you may save as much as 25 percent. If you do not have a claim more often than every 4 years you will make money with this higher deductible.

3. Fully Insure Your Building, But Not Your Lot

The land under your house can't be stolen or burnt down. Including its value in deciding how much homeowners insurance to buy will cause you to pay a higher premium than you should. The value of your lot is likely tens of thousands of dollars. You can find out that information from a realtor or your county government.

4. Use the Same Insurer For Home and Auto

Many companies sell several types of policies including home and auto. Those same companies will likely lower each of your premiums by 5 to 15 percent if you buy both your home and auto policies from them. But make certain this combined price is lower than buying the different policies from separate companies. Get quotes both ways. Many times the companies the have both home and auto policies have higher costs than direct internet providers.

Use these secrets and you will get the lowest possible homeowner's insurance premium.