Putting a cap on your homeowners insurance

Paying a big insurance bill is not one of the joys of homeownership. You can reduce that cost with some of these tactics suggested by the Insurance Information Institute.

• Compare different providers.
As with most home related services, you should take the time to seek out the best deal by comparing what different providers are offering. Ask friends if they are happy with their insurance provider, and check on-line quote comparison tools. Talk with local agents about their services and costs. Remember to compare the level of service and not just the price. You are looking for the best deal, not the cheapest one!

• Choose a higher deductible.
Each policy specifies an amount of money that you would pay in the event of a claim before any insurance payment kicks in. This is your deductible. By choosing a higher one, you may reap savings on your monthly premium. The risk is that should you suffer a loss, you would have to shell out more money if you’re covered by a high-deductible plan.

• Choose one insurer for all your needs.
Seek out deals that insurers offer when you buy more than one insurance policy from the same company. Choosing one firm to insure both your house and your car may result in significant savings.

• Protect your home before trouble strikes.
Talk to your insurer about steps you can take to trouble-proof your home. Ask what are the most likely natural disasters to strike your region and what you can do to best prepare your home. When a big storm hits, a well prepared home might avoid damage and help you avoid paying deductible charges.

• Take steps to increase your credit rating.
A spotless credit history could result in a lower insurance bill. Insurers often factor in your credit rating when pricing your insurance. Check your rating regularly, and try to pay down outstanding credit card bills.

• Loyalty can pay.
Some insurance firms offer customer loyalty discounts for those who have stayed with them over time. Ask insurers if they offer savings to long-standing customers.

• Include insurance in your cost estimates when buying a new home.
Certain neighborhood features, such as proximity to a fire department station, can influence a home’s insurance costs. Once again, ask your insurer for more information.