During tough economic times, every little cent helps. A penny saved is a penny that does not have to be earned. And if it is earned, you want that penny (and all you pennies) to work for you in the times of financial hardship. One way to a life of frugality is to not spend money when and where you do not have to do so.
One way to save is on home owners insurance. This is not to say you want to go with a company that is not rated highly nor has no reputation in the market. There are ways to save money and keep the home insurance protection you need.
Review the Policy
When it is sixty days prior to your policy renewal date, take a little time and review your coverage. You want to make sure that the coverage you are paying for meets your current needs, not the needs from several years ago when you began the coverage. You want to make sure the coverage limits are in alignment with your home's current value. Also check any amendments, additions, restrictions and exclusions and make sure you still need or want them. Any policy riders you have for guns, jewelry or other miscellaneous valuables should still be required. If not, get rid of them and this might save you some money.
Raise the Deductible
One of the easiest ways to reduce your insurance premium is to raise the deductible amount on the policy. As you increase the deductible, you lower the insurer's liability amount they would pay in the case of a claim. This in turn will lower you monthly or annual premium. Another reason to raise the deductible is due to the way insurance companies rate you as a risk as their insured. You do not want to make small claims for little items such as a broken window, stained carpet and the like. These claims will affect your risk rating and can cause an increase in your premium at your next renewal or give the insurance company reason to remove you as an insured altogether. If you are not going to make a small claim for $1,000, why pay a premium associated with a $500 deductible?
Home Improvement
If you live in an older home and have made improvements to the plumbing, electrical or other major system in the home, check with your insurance company to see if the improvement(s) qualify you for a reduction in your insurance premium. It may not but it never hurts to ask.
The same goes for adding a security system to your home. Most insurance companies offer a deduction for the addition of such a system. Check before you invest to see if it is something right for you.
Combine your Policies
Most insurance companies award loyalty. If you also have automobile insurance, check and see if by combining your policies with the same company you would qualify for a multi-policy discount. This will also help you save on your car insurance as a by-product of saving on your home owner's policy.
Senior Citizen
If you are an older homeowner, check with your insurance company to see if they offer a senior citizen or retiree benefit. Some do, some don't so you will just have to ask to find out if your company offers such a discount.