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Relatively Cheap Homeowners Insurance Can Be Found

By Mike Heuer


Depending on the type of home owned and where people live, the average homeowners insurance cost is about $1,000 per year, according to the Insurance Information Institute. But costs vary greatly.

Those living in Florida have a difficult time finding cheap home insurance mostly due to exposure to hurricanes, tropical storms and potential flooding. By contrast, people living in relatively stable environments with low rates of crime, such as South Dakota, can obtain cheap homeowners insurance much more easily. But when moving to South Dakota is not an option, there are ways to obtain the cheapest homeowners insurance possible without sacrificing a great deal of insurance protection.

The most obvious way to reduce costs is to raise the deductible on a home’s insurance policy. But doing so can leave the homeowner liable for additional costs when filing a claim when all he or she wanted was the cheapest homeowners insurance policy possible.

A better solution might be to take steps to mitigate potential damages from more common perils. In some places, that means installing window shutters to protect against possible wind and hail damage. Installing sprinkler systems also can result in cheap homeowners insurance plans due to the lessened risk of destruction by fire. Having smoke detectors in every room also can provide significant savings on homeowners insurance plans with discounts of about 5 percent common from many home insurers. Reinforcing roofs with newer, stronger materials can lead to rate deductions.

The same applies when installing security systems and alarms to help prevent break-ins and theft. Putting deadbolt locks on doors in addition to installing burglar alarms and smoke detectors and result in up to 20 percent off on home insurance plans. Adding to the cost savings are potential tax deductions for home improvements.

Cheap home insurance also can be obtained when insuring vehicles and homes through the same property and casualty insurance company. Not only will discounts be applied to the home insurance policies, they also will apply to the vehicle insurance plans, making the combined savings even greater. Using the Internet to obtain several estimates from various insurance companies also can help identify which ones will give the greatest discounts on their home and auto insurance plans to obtain the cheapest homeowners insurance policy possible.

Another way to keep home insurance costs as low as possible is to accurately assess the amount needed for coverage and not make the mistake of including the actual land on which the home is built. While the land is of value and tends to appreciate over time, the home itself depreciates, making regular adjustments in insured amounts necessary to get relatively cheap homeowners insurance.

Maintaining a good credit history and using the same homeowners insurance company over several years often times will result in lower premiums. And once people have been with the same insurer for several years and reach their elderly years of age 55 and older, many home insurers will reduce rates due to the greater responsibility exhibited by the homeowners.

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