How to Get Cheap Homeowners Insurance

If you are like most people your home is the largest and most valuable asset you own. And it not only provides a source of equity and shelter, but also memories. Given its importance, it is vital that you have enough homeowner's insurance to repair or rebuild your home in case of disaster. Being underinsured can leave to financial ruin.

Of course, you also don't want to be paying more for insurance than is necessary. Rates can vary wildly from one insurance company to another. Shopping around and comparing rates can save you hundreds of dollars per year. Compare at least three or four carriers before making a choice.

More ways to cut insurance costs

• Consider buying your auto and homeowner's insurance from the same company. Many companies offer discounts if you purchase more than one policy from them.
  
  
• Don't file small claims for minor damage. A handful of small claims may lead your insurance company to consider you a higher risk and increase your rates. Just take care of any minor repairs that come up yourself. Save insurance for the big ticket repairs.
  
  
• Raise your deductible. If you are going to pay for small repairs yourself anyway you might as well raise your deductible too. The typical deductible is $500. If you can afford to raise it to $1000, you can see a big drop in your premium.
  
  
• Ask your insurance carrier about other discounts they offer. Many will give discounts if you have smoke detectors, fire extinguishers, security systems, or deadbolts on external doors.
  
  
• Keep your credit report clean. It has been somewhat controversial, but some insurance companies have started using credit scores as a factor in determining rates. Miss a few credit card payments and you may find your insurance rates increased.