Home ownership is a dream for many Americans from the coasts to the farmlands of the Midwest. Along with home ownership comes another expense that can quickly total into the thousands per year, homeowners insurance. With a wide variety of factors affecting the cost of homeowners insurance it can be difficult to come up with an average cost. Your geographical location, home size and value, even proximity to a fire hydrant all affect your homeowner insurance rates.

On a whole maybe people do not think too much about their homeowners insurance rates. They simple pay the bill each month or have it rolled into their mortgage payments. However for a percentage of low-income homeowners out there it can be an expense that could mean the difference between the goal of achieving homeownership or continued renting. For these people insurance payments can quickly outpace their ability to keep up financially. This is particularly true thanks to new guidelines insurance companies are starting to use which base your insurance rate on factors that are outside normal loss conditions, such as credit score and income levels.

Insurance companies will argue that they do not discriminate against low-income families and those who are better off. However, statistics show that many low-income homeowners typically have lower credit scores than their wealthier counterparts. This can be for a number of factors, but increasingly it is because of unexpected medical bills and other critical services for which they have no control. By basing insurance rates off of credit scores insurance companies are using data that has no correlation on potential loss risk factor to fatten their bank accounts while making it more difficult for low-income families to afford homeowners insurance.

There are a few things that all homeowners can do to decrease the rates they pay for insurance. The first is to raise your deductible; going from a $250 to a $500 deductible could cut your premium by as much as 1/3rd in some instances. Another cost-saving tip is take advantage of as many discounts as possible with the insurance company. Often times the insurance companies won't tell you about these, but rather you must ask directly about what might be available. Of course, don't forget to be a comparison shopper. If one insurance company raises your rates for no reason then shop around and see what other deals might be out there on the market.

Low-income homeowners can sometimes feel as if they are in an uphill battle. Struggling to hold onto the American dream and being attacked from all sides. The best way to defend yourself is to be a smart consumer and a vocal one. If you have questions about your insurance rates or factors affecting your homeowners premiums then call your insurance company. Many times an informed consumer can be a insurance companies worst nightmare.