Are you throwing away money on homeowner’s insurance?

Your house is probably the most expensive asset you will ever own. You've to pay for mortgages, taxes and homeowner’s insurance. There may not be much you can do about the first two, but there are a number of solutions, which can save you a lot of money on your insurance premiums. It's actually possible to save more than 50% on your insurance policy. Here are some ideas you should take advantage of. Always compare rates This is rule number one when you are buying any kind of insurance. You need to know what insurers sell policies in your area. You can get the names of these providers in a variety of ways. One option is to contact your state insurance department for a listing of providers. Consider insurance ramifications when buying a home You probably already have bought a home or have committed to a decision. However, if you are planning on moving or are in the process of looking for your next house, you should consider locations that won’t have high insurance premiums. If you live in a house next to a fire hydrant, you will probably pay less on your plan. On the other hand, if you end up living in an area that has a high crime rate or frequent natural disasters, you're going to have higher premiums. You may need to take advantage of whatever discounts you can if you think your premiums are too high. Also, you need to keep in mind that certain natural disasters are not covered under typical plans, which you need to take into consideration when you're buying in an area that is prone to floods or earthquakes. Stick with the same company Some people choose to change insurance companies regularly to take advantage of a small rebate here and there. This is usually counter productive, because insurance companies often reward clients who have stayed with them over the years. After six years, you may be able to reduce your savings by as much as 10%. If you've already been with a company for over a year, you should make sure you've a pretty good reason before you choose to change plans. You should also try to combine your plans with the same company. Most homeowner insurance plans also provide auto insurance. If you get both types of coverage from the same company, you can save up to 15% on your premiums. Raise your deductible What can you afford to pay out of your own pocket if something happens to your house? If you can afford a $3000 or $4000 deductible, you may be able to save as much as 24% on your policy. As long as you don’t need to use your coverage within three years, your deductible won’t kick in and it will have already been paid off. Use every possible discount Insurers offer a variety of discounts and you should take advantage of them whenever you possibly can. If you're a retired homeowner or don’t smoke, insurance companies will likely offer you lower premiums. Also, do what you can to improve the safety of your house. New deadbolts on your doors can save you 5%. If you get a home security system, you may be able to reduce your premiums by 15-25%. Insurance is expensive, but you can do a lot to reduce your payments. Always take advantage of your premiums to make owning your home more affordable.