What the Government Has to Say About Saving Money on Your Home Insurance

What the Government Has to Say About Saving Money on Your Home Insurance

When it comes to money, nobody does it better than Uncle Sam.

Americans have suspected for years that the government's been keeping secrets. The number of conspiracy theories that hit the tabloids every year ought to tell you that! What they don't know is that not all of those secrets have lasting impacts on national security. Some of them just save you money.

Okay, you're still reading despite the skeptical look on your face. That's a good sign! You see, various government organizations have been doing research for years to help Americans navigate their economy and daily lives, and for the Insurance Institute in New York that means finding ways for Americans to save money on their home insurance.

Many of the things you're about to see are going to be the same ol' same ol', things you've been reading for years in various publications. Some of them, however, you'd never know if you hadn't heard it from the government!

Think About Home insurance When You're Buying a Home in the First Place

The easiest way to get a good deal on your home insurance is to buy a home that's insurance friendly to begin with. There are certain things, like your zip code, whether you have a professional or volunteer fire department, newer electric, heating and plumbing systems and the proximity of your home to a fire hydrant, that have a strong impact on the cost of your home insurance. The same is true of the materials your home is made of and how sturdy the foundation is (especially if you happen to live in a storm and/or earthquake zone area). Check the CLUE (Comprehensive Loss Underwriting Exchange) report of any house you're thinking about buying. This will give you an excellent idea of what claims have been filed in the past and, consequently, what problems you can expect in the future that will impact the cost of your premiums.

Shop Around

Unless you've been blessed with an unlimited budget and a willingness to spend it indiscriminately, you've probably spent more than your fair time in the past looking for a great bargain. The motto of the American consumer is to never take the first price you're offered until you've looked around to see who can offer you a better deal. So why wouldn't you do it with your home insurance?

Raise Your Deductibles

The more money your home insurance provider has to pay out if your home is damaged as a result of wind, rain, fire and/or indiscriminate burglars who just don't understand that you've got better things to do with your time than spend it filling out paperwork, the more money you're going to be paying out each month into your "just in case" fund. If you're willing and able to raise your deductible to $1,000 or more you might be able to shave as much as 25% off your annual premiums.

Separate the Cost of Your House from the Cost of Your Land

Do you know how much you paid for your home? No, put away your mortgage papers. When you take out a mortgage you're not just paying for the cost of your building (which is what your home insurance is interested in). You're also paying for the land under, around and (if you happen to live in a cave) over it as well. Splitting the cost so that your insurer is only paying the rebuilding cost of your home if it's damaged in an accident can save you hundreds a year.

Turn Your Home into Ft. Knox

Have you ever seen Fort Knox? Neither rain nor snow nor Bruce Willis and a band of thieves can break in, which means if it wasn't for the cost they pay to insure the piles of gold in their care their insurance rates would be rock bottom. Protecting your home from Mother Nature and society's petty (and not so petty) criminals will go a long way toward convincing your insurer that you're not going to be a high maintenance customer, and they're usually so grateful at the thought that they're more than willing to cut you a break on your premiums.

Buy Your Home and Auto Insurance Policies from the Same Insurer, and Don't be Afraid to Stick Around!

Insurance companies that offer a diverse selection of insurance options are always looking for ways to pump up their bottom line, and one of their most successful methods is dropping the cost of a policy for their already satisfied customers. For example, they might be willing to knock 10-20% off the cost of a home insurance policy for their already satisfied auto policy holders. And the longer you're with that company, the lower your premiums fall. Statistics show that many insurance companies will drop their premiums as much as 10% over the course of six to ten years just to keep their steady customers on board.

Keep an Eye on Your Credit Record

In today's society there is almost nothing that isn't influenced by your credit rating-including the cost of your home insurance. Pay your bills on time, don't take out more credit (or credit cards) than you need, and make sure you check your credit report regularly for errors.

Is Your Property Really Worth as Much as Your Home insurance Says It Is?

Ten years ago a VCR or a DVD player would have cost you an arm and a leg; now, their value is almost negligible. The replacement value of most of your possessions is going to drop with age, and acknowledging that will go a long way toward helping to bring down the cost of your home insurance.

Ask for Discounts

Every company has its own set of discounts, and finding out which ones you qualify for will do wonders to help keep your bank account intact. Talk to your agent and see what they can do for you.

Try to Avoid Government Plans

Most government insurance agencies will tell you that because the government only insures high risk areas where not even the bravest of insurance companies dare tread, their premiums are heftier that what you'd find out on the private market. They're more likely to have to pay out claims due to flood or earthquake damage, and as a result they have to charge their consumers more to cover the loss. Finding a high risk private insurance company that's willing to protect your home is likely to save you money, regardless of how high your annual premiums happen to be.

Bet you never thought you'd hear the government telling you not to give them money, did you?

Related Articles

• What Your Dog Could Be Doing to Your Home Insurance Quotes - Mar 23, 2010 - 6:44:25 PM
• Scintillating Questions to Ask BEFORE You Start Collecting Home Insurance Quotes - Mar 19, 2010 - 8:51:40 AM
• Promise Yourself You'll FINALLY Go Looking for Cheap Home Insurance in 2010 - Dec 28, 2009 - 10:56:28 PM
• Homeowners Insurance, Holiday Insurance and Having a Very Merry Christmas - Dec 22, 2009 - 10:46:46 PM
• Is Your Dallas Homeowners Insurance Looking Out for Your Video Camera When You're Out of Town? - Dec 18, 2009 - 10:21:08 PM
• What's the 'Consumer Choice' Bill Going to Do to Your Florida Homeowners Insurance? - Dec 10, 2009 - 3:36:02 PM
• The Secret to Surviving the Christmas Crime Wave (and Keeping Your Dallas Homeowners Insurance Rates Down While You're at It) - Nov 30, 2009 - 9:57:11 AM
• You Might Want to Call Your Agent and Make Sure Your Florida Condo Insurance is Ready for the Holidays - Nov 25, 2009 - 10:39:00 AM
• Stop Fighting with Your Pennsylvania Home Insurance and Keep the Vermin Out-They're Not Going to Pay for It Anyway - Nov 16, 2009 - 10:32:27 AM
• "So, I'm NOT Safe Under My Roommate's Nebraska Homeowners Insurance Policy?" - Nov 10, 2009 - 11:59:31 AM