Homeowners insurance is more than a good idea, it’s an essential.  The unexpected happens every day, and it’s best to be prepared.  Or, at least, as prepared a sensible homeowner can be.  Suppose you’re fast asleep one night, and a water pipe bursts flooding the basement.  The cost of repairs can run into the thousands.  It’s at times like these that homeowners insurance is a real boon, and well worth the cost.  Without insurance, you will be left to cover those repairs out of pocket, and if your savings fall short you may have to rely on a payday loan or two to see you through.  So, if you think you’re saving money by skipping on the homeowners insurance, think again.  There are ways to keep your homeowners insurance, and still save money.

Compare Rates

The first step to saving on homeowners insurance is to compare rates.  All insurance companies are not created equal, and you have to do a little research to find the best rates.  Talk to friends and co-workers, and ask for advice on insurance firms.  Use an online service to compare insurance quotes and find a few that fit your budget.  Finally, check consumer guides and review the performance history of the firms you are considering.  Find the insurance provider who offers the lowest rates, but still maintains a solid reputation.

Home destroyed by tornado in Granbury, TX by State Farm, on Flickr.  This work is licensed under a Creative Commons Attribution 2.0 Generic License.

Choose the Right Amount of Insurance

The price you paid for your home originally, does not necessarily equal the cost of repair or rebuilding.  Remember, the original price also covered the cost of the land itself.  So, don’t include the value of the land when shopping for homeowners insurance.  You only want to pay for an insurance policy that covers the total costs of repairs, or in extreme cases, rebuilding.

Higher Deductibles

A deductible is the amount of money you are expected to pay toward a claim before your insurance policy kicks in.  The lower your deductible, the higher your premiums.  Choosing a suitable deductible can be difficult, but there are a few things to keep in mind.  If you live in a disaster prone area, or a rougher neighborhood, you will want to keep a low deductible and simply accept the higher premiums.  However, if you live in a good neighborhood, and there is little history of natural disasters, a higher deductible can save you money on your insurance premiums.

Consolidate Your Insurance Policies

Most insurance companies offer homeowners, auto, life, and liability policies.  More often than not, when you move all of your insurance needs to a single firm you can qualify for an across the board discount.  Sometimes as much as 15%.  Check with your insurance carrier to see if they offer multi-policy discounts.  If so, move all of your insurance needs under one roof.  The money you save can be put in the bank, or used to upgrade your insurance coverage on some, or all, of your policies.

Home Security Discounts

Upgrading your home security can often earn you discounts with your insurance provider.  Installing a burglar alarm, smoke detector, and dead bolt locks can earn you up to a 5% discount on your policy premiums.  Some companies go even further, offering significantly larger discounts for homeowners that install sprinkler systems, or contract with a home monitoring service.  Now, these upgrades are not cheap, so you will have to weigh their cost against your insurance savings.  But in an emergency, they may be well worth the money.

Homeowners insurance helps to give you peace of mind.  While it is an added expense, it can save you a lot of money down the line, especially in the event of an emergency.  If you have been putting off getting homeowners insurance because you thought you couldn’t afford it, think again.  There are plenty of ways to get a solid homeowners insurance policy, without breaking your budget.