Insurance is a highly competitive business and the price you pay for your home insurance can vary by hundreds of dollars, depending on the insurance company you buy your policy from. Companies offer several types of discounts, but they don’t offer the same discount or the same amount of discount in all states. For this reason, you should ask your insurance agent about any discounts available to you. Here are some things to consider when buying home insurance.

1. Raise your deductible.
Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay according to the terms of your policy. Deductibles on homeowners policies typically start at $500. By increasing your deductible to $1000 or greater, you could save a significant amount of money.
2. Buy your home and auto insurance policies from the same insurer.
Some companies that sell homeowners, auto and life insurance, such as State Farm Insurance, will take 5 to 15 percent off your premium if you buy two or more policies from them.
3. Consider these Factors when buying a Home
Consider how much insuring it will cost. Because 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, insurers may offer you a discount if your house is new. Check its construction, too. Brick, because of its resistance to wind damage is better in the East; frame, because of its resistance to earthquake damage, better in the West. Choosing wisely could cut your premium by 5 to 15 percent. Avoiding areas that are prone to floods can save you money because you may not need a flood insurance policy. Home insurance does not cover flood-related damage. If you do buy a house in a flood-prone area, you’ll have to buy a flood insurance policy, too.
And is your house close to a hydrant or fire station? The closer your house is to firefighters and their equipment, the lower your premium will be.
4. Insure your house, not the land.
The land under you house isn’t at risk from theft, windstorm, fire and other perils covered in your homeowners policy. So don’t include its value in deciding how much home insurance to buy. If you do, you’ll pay a higher premium than you should.
5. Compare the limits in your policy and 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 spend money for coverage you don’t need. Check over your policy and make sure your home insurance policy and your personal articles policy are covering items that you actually still own, i.e.., watch, ring, fur coat.
6. Look for private insurance first and always ask questions.
If you live in a high-risk area — say, one that is especially vulnerable to coastal storms, and have been buying your home insurance through a government/state plan, you should check with an insurance agent. You may find that there are steps you can take that would allow you to buy insurance at a lower price in the private market.
If you have questions about insurance for any of your possessions, be sure to ask your agent when you’re shopping around for a policy. For example, if you have a small business in your home, be sure to discuss coverage for that business. Most home insurance policies cover business equipment/property in the home but only for a small amount and they offer no business liability insurance.
Although you want to lower your home insurance cost, you also want to make certain you have all the coverage you need. So don’t be afraid to ask questions, before you have a loss.
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