Here some great ways to reduce your home insurance costs:

Raise Your Home Insurance Deductible

Deductibles are the amount of money you have to pay toward a loss before your home insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums. Nowadays, most home insurance companies recommend a deductible of at least $500. If you can afford to raise your home insurance deductible to $1,000, you may save as much as 25 percent. Remember, if you live in a disaster-prone area, your home insurance policy may have a separate deductible for certain kinds of damage. If you live near the coast in the East, you may have a separate windstorm deductible; if you live in a state vulnerable to hail storms, you may have a separate deductible for hail; and if you live in an earthquake-prone area, your earthquake policy has a deductible.

Buy your home and other policies from the same insurer

Some companies that sell home and other types of insurance will take 5 to 15 percent off your premium if you buy two or more policies from them. But make certain this combined price is lower than buying the different coverages from different companies.

Improve your home security

You can usually get discounts on your home insurance of at least 5 percent for a smoke detector, burglar alarm or dead-bolt locks. Some companies offer to cut your premium by as much as 15 or 20 percent if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations. These systems aren't cheap and not every system qualifies for a discount. Before you buy such a system, find out what kind your insurer recommends, how much the device would cost and how much you'd save on home insurance premiums.


Seek out other home insurance discounts

Companies offer several types of home insurance discounts, but they don't all offer the same discount or the same amount of discount in all states. For example, since retired people stay at home more than working people they are less likely to be burglarized and may spot fires sooner, too. Retired people also have more time for maintaining their homes. If you're at least 55 years old and retired, you may qualify for a discount of up to 10 percent on home insurance at some companies. Some employers and professional associations administer group home insurance programs that may offer a better deal than you can get elsewhere.

Stay with the same insurer

If you've kept your home insurance coverage with a company for several years, you may receive a special discount for being a long-term policyholder. Some home insurers will reduce their premiums by 5 percent if you stay with them for three to five years and by 10 percent if you remain a policyholder for six years or more. But make certain to periodically compare this price with that of other home insurance policies.

Review the limits in your home insurance policy and the value of your possessions at least once a year

You want your home insurance policy to cover any major purchases or additions to your home. But you don't want to spend money for coverage you don't need. If your five-year-old fur coat is no longer worth the $5,000 you paid for it, you'll want to reduce or cancel your floater (extra insurance for items whose full value is not covered by standard homeowners policies such as expensive jewelry, high-end computers and valuable art work) and pocket the difference.

When you're buying a home, consider the cost of homeowners insurance

You may pay less for home insurance if you buy a house close to a fire hydrant or in a community that has a professional rather than a volunteer fire department. It may also be cheaper if your home's electrical, heating and plumbing systems are less than 10 years old. If you live in the East, consider a brick home because it's more wind resistant. If you live in an earthquake-prone area, look for a wooden frame house because it is more likely to withstand this type of disaster. Choosing wisely could cut your home insurance premiums by 5 to 15 percent.

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