Home owners insurance is not a fixed premium. You may be able to trim a few hundred dollars off your premium by asking a few questions. Premiums are calculated by the insurance company by determining your chance of having a loss and how much it may have to pay if you filed a claim.
It may be possible to reduce your premium by up to 30-40%. Determining factors may include where your property is located, risk philosophy, the insurance company’s rate structure, discounts available and your individual policy. Call your agent and ask about the different discounts available.
Some of these would include certain types of home improvements, raising your deductible (the amount you will have to pay out of your pocket in case of a claim), raising your deductible from say $1,000 to $2,500 may save you upward to 25% to 30%. And raising it to $5,000, may save you 35 to 40%. Some insurance companies assume you have an outbuilding/shed located on your property – and if they do, there may have been an additional charge for this. Don’t forget to ask.
If you have a burglar alarm or plan on installing one, make sure you mention this – it can save you money. Any repairs or upgrades to plumbing or electrical should also be mentioned. Some companies may give you a reduced rate if you make automatic payments – directly from your bank account to the insurance company.
Before you file a claim, carefully assess the cost in conjunction to your deductible. In many cases if the claim amount is worth less than $1,000 over your deductible, you’re better off not filing the claim because in the long run it may cost you more in adjusted premiums. Don’t forget to check around with other companies and compare your policy to another – this may also save you some money.