The Best Ways to Lower Your Homeowners Insurance Costs

Did you know that there are actually ways that you can reduce your homeowners insurance costs? As an Electric Insurance policyholder, our coverage counselors will help you take full advantage of these great cost-savings. Here are some of the best ways to cut your premiums.

1. Raise your deductible. Your deductible is the amount of money you have to pay toward a loss, according to the terms of your policy, before your insurance kicks in. Deductibles on homeowners policies typically start at $250. By increasing your deductible to $500, you could save an average of up to 12 percent; $1,000, up to 24 percent; $2,500, up to 30 percent; and $5,000, up to 37 percent.

2. Buy both your home and auto policies from Electric Insurance. At Electric Insurance, we offer multi-policy discounts when you buy both auto and home with us.

3. When buying a home, consider how much insuring it will cost. Because a new home's electrical, heating, plumbing systems, and overall structure are likely to be in better shape than those of an older house, you may be eligible for a discount if your house is new. Check its construction, too. Brick, because of its resistance to wind damage, is better in the East; Frame, because of its resistance to earthquake damage, is better in the West. Choosing wisely could cut your premium.

Avoiding areas that are prone to floods can save you money in flood insurance. Homeowners insurance doesn’t cover flood-related damage. If you do buy a house in a flood-prone area, you'll have to buy a flood insurance policy, too.

Does your town have full-time or volunteer fire service? And is your house close to a hydrant or fire station? The closer your house is to firefighters and their equipment, the lower your premium will be.

4. Insure your house, not your land. The land under your house isn't at risk from theft, windstorm, fire, and other perils covered in your homeowners policy. So don't include its value in deciding how much homeowners insurance to buy. If you do, you'll pay a higher premium than necessary.

5. Beef up your home security. You can get discounts for a smoke detector, burglar alarm, or dead-bolt locks. And you may be able to cut your premium if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police station or other monitoring facility. These systems aren't cheap and not every system qualifies for the discount. Before you buy such a system, talk to one of our coverage counselors for recommendations on what to buy, how much it may cost and how much you could save on premium.

6. Stop smoking. Smoking accounts for more than 23,000 residential fires a year. You may be eligible for a reduced premium if all the residents in your house don't smoke.

7. Retire from your job. Retired people stay at home more and spot fires sooner than working people. Retired people have more time for maintaining their homes too. If you're at least 55 years old and retired, you may qualify for a discount.

8. Stay loyal. By keeping your insurance with Electric Insurance, you may receive special consideration. The longer you stay with us, the greater the savings.

9. Compare the limits in your policy and the value of your possessions at least once a year. You want your policy to cover any major purchases or additions to your home but you don't want to spend money for coverage you don't need. If your five-year-old fur coat is no longer worth the $20,000 you paid for it, you'll want to reduce your floater and pocket the difference.

Source: Federal Consumer Information Center, Electric Insurance