12 Ways to Reduce Home Insurance Rates

Don't overpay for your home insurance. Read these 12 ways you can significantly reduce your premiums.

1. Shop around. It sounds simple, but you will never find the best home insurance rates unless you really look for them. Compare multiple offers.
2. Hike up your deductibles. Raising your deductible by just $500 can help you save up to 25% on your home insurance rates.
3. Accurately estimate rebuilding costs. What you paid for your home is not the same as what it would cost to rebuild it because the sale price also included the value of the land on which your home was built, which you wouldn't lose in a disaster.
4. Buy multiple policies from the same insurer. If you buy your home and auto policies from the same insurer, you can qualify for a multiple-policy discount that can save you a bundle on home insurance rates.
5. Disaster-proof your home. Talk to your insurance agent to find out what you can do to make your house more resistant to disaster. You might be able to reduce your premiums by adding reinforcements to your roof or storm shutters to your windows.
6. Beef up home security. Deadbolts, burglar alarms, and fire detectors can usually save you about 5% on your home insurance premiums.
7. Look for other discounts. You might qualify for a number of discounts on your home insurance rates, so ask your agent for a list.
8. Keep your credit score up. Credit scores are used to price home insurance policies, so building a good credit record can help cut your rates.
9. Remain with the same insurer. Some insurers offer discounted home insurance rates for long-term policyholders, so it may pay off to remain with one insurer for an extended period of time.
10. Reassess the value of your possessions annually. You should take a home inventory every year to establish how much your possessions are worth. Items will depreciate over time, which means you can reduce the amount of coverage you carry.
11. If you are in a government plan, go private. If you purchased your home insurance through a government program, you might investigate home insurance rates from private companies in your state. You might find that you will pay less with a private insurance plan.
12. Think about home insurance rates when buying a home. Your home insurance rates might be lower if you choose a house near a fire hydrant or if your home's electrical, heating, and plumbing systems are less than ten years old.