Saving Money on your Homeowners Insurance

First, make sure you rely on a quality company that guarantees you a competitive price -- like Homesite! We admit it, we're biased -- but for good reasons: on top of direct, commission-free low rates, Homesite offers discounts for burglar alarms; sprinkler systems and fire alarms; safety features; and qualified retirees.

When home shopping, consider the cost of insuring it. A new home's electrical, heating and plumbing systems, and overall structure are likely to be in better shape than those of an older house, so you could save up to 15 percent if the house is new. Avoiding areas prone to floods can save you hundreds a year on additional flood insurance, which is required in those areas. Choosing a home that's close to a fire hydrant or fire station can also lower your premium.

Increase your deductible. Deductibles on homeowners policies typically start at $250. By choosing to cover more of a potential loss yourself and raising your deductible to $500, you could save up to 12 percent; at $1,000, you could save up to 24 percent; at $2,500, as much as 30 percent, depending on your insurer and your location.

Bundle your home and auto coverage. Many companies that sell homeowners, auto and liability coverage will reduce your premium between 5 and 20 percent when you buy two or more policies from them. Of course, you could save this much just by buying your home insurance direct from Homesite.

Improve your home security. You can usually get discounts of at least 5 percent for a smoke detector, burglar alarm, or dead-bolt locks. Some companies offer to trim your premium even more if you install sophisticated fire sprinkler systems or a fire and burglar alarm that rings at the local police station or other monitoring facility.

Compare policy limits with the value of your possessions at least once a year. You want your policy to cover any major purchases or additions to your home -- but you don't want to pay for coverage you don't need. If your five-year-old fur coat is no longer worth the $15,000 you paid for it, you'll want to reduce the amount of your endorsement and keep the difference.