Discounts from your insurance company are available for a wide variety of factors, ranging from the type of building material used to build your home to how close you live to a fire station. These discounts will vary by state and insurance company.
- $500 and save up to 12 percent on your premiums
- $1,000 and save up to 24 percent
- $2,500 and save up to 30 percent
- $5,000 and save up to 37 percent.
Make sure you can afford to pay the higher deductible out of pocket if something should happen.
3. Buy your home and auto policies from the same company
Many companies will give a multiline discount if your buy both homeowners and auto coverage from them.
You'll also want to consider the construction of the home and where you live. If you live on the East Coast, you'll want the house to be able to stand up to wind damage, while on the West Coast, you need to keep earthquakes in mind.
5. Insure your home, not the land
While your home and its contents are at risk from fire, theft, windstorms, and other perils, the land your home sits on is not. Don't include the value of the land in deciding how much homeowners insurance you need to buy. Your agent can help you assess the coverage you need.
6. Improve security and safety
Items such as dead bolt locks, burglar alarms, and smoke detectors can usually bring discounts of 5 percent each, depending on the company. Your insurance company may also offer a significant discount of 15 or 20 percent if you install a sophisticated home-security system. If you're thinking about buying such a system, check with your insurer to see which systems you'll get a discount for.
7. Stop smoking
Smoking accidents account for more than 23,000 residential fires every year. Some insurers offer to reduce premiums if no one in the home smokes.
8. Look for senior discounts
Insurance companies have found that retired people stay at home more and spot fires sooner than working people. Older people also have more time for maintaining their homes. If you're at least 55 years old and retired, you might qualify for as much as a 10 percent discount.
9. Look for group coverage
Alumni and business associations often work out insurance deals with an insurance company, which includes a discount for association members. Ask your association's director about any such deals.