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10 tips for cheaper home insurance

Combine these tips and you could cut your cost of coverage by 20% or more.

By Stacy Johnson Apr 17, 2012 11:19AM

This post is from Angela Colley at partner site Money Talks News.

Money Talks News on MSN MoneyHomeowners insurance is one of the most expensive things we pay for that we hope to never use.

In 2009 (the last year the information was available) the average homeowners insurance premium was $880, according to the Insurance Information Institute. But premiums go much higher in some areas. For example, in my home state of Louisiana the average premium was $1,430.

While you're forced to pay homeowners insurance, you don't have to pay top dollar.


Watch the short video below for tips from Money Talks News founder Stacy Johnson, then read on for more.

Now let's fill out those tips and add a few more:

1. Raise your deductible

Raising your deductible is one surefire way to lower your monthly homeowners insurance premium. As Stacy put it:

“The more loss you’ll pay, the less your insurance will cost. Raising your deductible from $250 to a thousand dollars could slash your premium by 10 to 30 percent. A lot of savings, not a lot of extra risk.”

If you have an emergency fund, you can use some of that money to pay your deductible should you ever have to file an insurance claim. (A flood, house fire or robbery qualifies as an emergency to me.)

If you don’t have an emergency fund, check out 4 Steps to Saving More to learn how to build one. Then call your insurance provider and raise that deductible.

2. Disaster-proof your property

If you upgrade your home, you might save on homeowners insurance. For example, your provider may give you a discount for having weather-resistant features: My company offers a discount for storm shutters and stronger roofs since I’m in an area prone to high winds and flooding.

Call your insurance provider before spending any money, and ask what improvements will result in a lower premium.

3. Install security features

In 2009, burglary victims (in all structures, including homes) lost an estimated $4.6 billion to property damage and theft, according to the FBI. And as Stacy reported, smoking causes 23,000 fires every year.

Your insurance provider may offer discounts if you install safety features. For example, the Insurance Information Institute reports that you can save at least 5% by adding a security alarm, a deadbolt lock or a fire extinguisher. Upgrade to a more advanced security feature -- like a security alarm that automatically dials the police -- and you could save up to 20%.

4. Review your insurance riders

Periodically review any insurance policy riders -- basically, extra coverages at added cost -- and make sure you still need them. I once carried extra insurance on my jewelry, to the tune of $96 a year. I later sold the jewelry but forgot about the rider for another year, thus wasting $96.

5. Ask for discounts

As Stacy mentioned in the video, many discounts are available beyond installing safety features and disaster-proofing. For example:

  • Multi-policy discounts
  • Senior citizen discounts
  • Nonsmoker discounts
  • Claim-free discounts
  • Marital status discounts

The discounts offered vary by provider. Call your company and ask for the full list.

6. Find a dog-friendly insurer

I'm the proud parent of a 50-pound, full-blooded pit bull. People love to tell me I’ll never be able to find homeowners insurance with an "aggressive breed." They're wrong.

If you own a large dog -- or a breed labeled as aggressive -- you might have a harder time finding homeowners insurance, but you don’t have to pay an outrageous premium. A few providers will approve you at a decent rate after a home check, or if you can provide a vet reference. In my case, an agent visited my home and checked out my dog before quoting a premium.

The charity group Pit Bull Rescue Central has a list of "all breed-friendly" insurance providers. The American Kennel Club also has some helpful links on its Homeowners Insurance Resource Center page.

7. Shop around

Just because you got a great deal on homeowners insurance years ago doesn’t mean you're getting a great deal today. Rates can change, and so do situations. Once a year, shop around. You can do that right on the Money Talks News Insurance page -- it  takes only a few minutes. And if you do decide to replace your existing policy, make sure the new policy is in place before you drop the old.

8. Don't insure your lot

This may sound obvious, but if you paid $200,000 for your house, you don't need to have $200,000 worth of coverage, because part of the purchase price included the lot your house sits on. It's not going to burn down or get stolen.

9. Inventory your possessions

One of the silliest things people do is pay a lot of money to insure their stuff, then fail to have an inventory when they lose it all. No matter how nice your insurance company is, it's not going to pay to replace things you can't remember or prove you had.  And nobody can remember every single item in the house, from dishes to socks.

If you don't follow any other advice in this article, at least do this: Take your cellphone or other camera and walk around your house making a video of everything you have. Open drawers and closets -- get it all. Then send that video to a faraway friend. If disaster strikes, that will be the smartest hour you ever spent.

10. Don't be penny-wise and pound-foolish

While the goal in reviewing insurance is to save a buck or two, don't lose sight of the ultimate goal: protecting your property. Make sure you maintain adequate liability and other coverages at all times. Double-check to see that your policy provides for replacement coverage, not coverage that will reimburse only depreciated values.

If you're running a business from your home, be aware that without notification (and perhaps a rider at extra expense) the insurance company may refuse business-related claims. For example, if the UPS driver trips on your front porch while delivering a business-related package and sues, the expense may not be covered by your homeowners policy. When in doubt, ask.

More on Money Talks News and MSN Money:

Apr 18, 2012 1:47PM
In reference to number 8, you have no choice as to what to insure your house for.  Insurance companies have a formula that multiplies the square footage by a figure they say is the current amount it costs to rebuild a square foot of house like yours.  Their figures are unrealistic and just plain wrong but you have no recourse if you want insurance for your house.
Apr 8, 2013 5:08PM
10 tips for cheaper home insurance- MSN Money : Try this site where you can comapre quotes from different companies:
Aug 3, 2013 6:25PM
Great info thanks there's also this sight that offers unlimited towing roadside assistance they offer over 150k in benefits from covering lawyer fees and bond programs to motorcycle and Rv emergency assirsnce for 19 dollars a month they also have an affiliate program that pays you for referral.

Jun 30, 2014 3:52PM
I have been breeding pitbulls for years and pitbull are very hard to get quality insurance with
<a href="" target="_blank">Quality pitbulls with great temperament </a>

Jun 27, 2013 1:41PM
These are indeed great tips. I highly recommend that you compare <a href="">home owners insurance in Louisiana</a> or wherever else you are as well. Even though this is a common piece of advice few are actually wise enough to follow it.
Dec 25, 2012 6:28AM

Really you are sharing some nice tips for cheap home insurance.  I really appreciate your effort. You can get a cheaper home cover deal by increasing the level of voluntary excesses i.e. the amount you are prepared to pay for yourself. You may be able secure a bargain home insurance price if you can physically improve the security of your home. Secure homes are less likely to suffer the cost of burglary and damage. For more information on getting cheap home insurance, visit 

Jun 20, 2012 10:35PM
Great article... You could also get discount using a HOME FIRE MONITORING. What's interesting is that it is usually less dollars than the discount value you get from your home insurance.
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