Strategies to Lower Homeowners Insurance

Physician's Money Digest, December 2005, Volume 12, Issue 16

AAII Journal

Although you may not have much controlover skyrocketing malpractice premiums,you can lower your homeownersinsurance premiums by as much as 10% to20%, according to the .Consider the following strategies:

•Ask for a discount. Factors such asproximity to a fire station, type of buildingmaterials used, and retiree status mayqualify you for a discount. Many insurersalso reward customer loyalty of 5 or moreyears with lower rates.

Shop around first:

•Look for a packagedeal. Many companiesoffer a discount ifyou purchase multiplepolicies, such as homeowners, auto, andlife. Separate policiesfrom different insurers may be a better deal.

•Don't insure your land.Unless your home is on a cliff andthe ground falls out from underneath it,your land's value will remain constant—it's the building that you need to worryabout. Insure your house and its contentsonly against theft, fire, hurricanes, and othernatural disasters.

•Install safety devices. Smoke detectors,burglar and fire alarms, and deadboltlocks function as double-duty safetyand discount devices, according to manyinsurance carriers.

•Up the ante. Reduce your overallinsurance premium by assuming more risk.Keep in mind that raising your deductiblemeans that you cannot make claims forsmaller items and will have to pay forrepairs out of pocket.