How to Save on Homeowners Insurance

1. Raise Your Deductible

Remember, the higher your deductible, the more money you can save on your premiums. Most insurance companies recommend a deductible of at least $500 but if you can afford to raise your deductible to $1,000, you may save as much as 10 percent.

2. Insure Your Home, Not the Land

The land on which your house sits is not at risk from theft, windstorm, fire and the other hazards covered in your homeowners policy. Therefore, don't include its value when deciding how much insurance to buy.

3. Take Advantage of Multi-policy Discounts

You can save five to 22 percent off your premium by buying two or more policies from one company.

4. Improve Your Home Security

You can save at least two percent if you install a smoke detector, five percent with a sprinkler system, or 10 percent if you install a sprinkler system or fire/burglar alarm that rings the police, fire department or other monitoring station.

5. Seek Out Other Discounts

For instance, "senior citizens" (at least 50 years old) may qualify for a discount of up to five percent. Check into other discounts, like those for safe drivers or good students.

6. Maintain a Good Credit Record

Today, insurers are using credit information to price homeowners insurance policies. To protect your credit standing, pay your bills on time, don't obtain more credit than you need and keep your credit balances as low as possible.

7. Perform a Yearly Assessment

Each year, review both your policy and household possessions to make sure you are covered for any major purchases or additions to your home.

8. Location, Location, Location

You may pay less for insurance if you buy a house close to a fire hydrant or in a community with a professional rather than a volunteer fire department. Your insurance may also be less expensive if your home is of newer (less than 15 years old) construction. And, homes located in gated communities receive a five percent discount.