Getting Cheap House Insurance - No Matter Where You Live

Geographic location heavily influences house insurance premiums. For example, in 2006, Texas homeowners paid an average of $1,409 per year for coverage according to the Insurance Information Institute. Contrast that with the $477 per year Idaho residents paid for home insurance. Obviously, where you live can make a big difference with your house insurance premiums. However, that doesn’t mean that homeowners who live in high-risk areas cannot find affordable coverage. If you follow these steps, you can find cheap house insurance regardless of where you live.

1. Compare multiple house insurance companies. Especially for homeowners who live in high-risk areas, shopping around pays off. If major insurance carriers aren’t willing to issue you affordable coverage, you can probably still find a smaller carrier that is less risk averse. Try to get a minimum of three or four quotes before you buy.
2. Raise your policy deductible. Your house insurance premiums will be substantially cheaper if you raise your deductibles. Most insurance experts advise at least a $500 deductible, but if you can raise your deductible to $1,000, you could lower your premiums by up to 25%.
3. Insure your home for the right amount. Some homeowners make the mistake of over-insuring their homes by purchasing as much coverage as the house cost to buy. However, what you paid for your home includes the value of the land on which it is built. In the event of a loss, you wouldn’t have to replace the land, just the house. Make sure you have enough coverage to completely rebuild your home if necessary, but don’t insure the home for its full real estate value.
4. Invest in a high-tech security system. Installing an anti-theft system that alerts the police of break-ins could save you as much as 15%-20% on your house insurance premiums. Similarly, installing a fire-sprinkler system could also save you money on your house insurance.
5. Clean up your credit report. House insurers regularly use consumer credit information to determine premiums, so a damaged credit report could result in a pricey policy. To keep your credit report in good shape, always pay your bills on time, keep your balances to a minimum, and don’t apply for more credit than you need.
6. If possible, consider the cost of house insurance when buying your home. If you are in the process of buying a home currently, make sure you consider the costs of homeowners insurance when making your decision. Newer houses and those made from certain materials will qualify for lower rates than other homes. When comparing houses, ask your insurer to give you quotes for coverage on each to help make your decision.
7. Look into a government policy. Homeowners who are too high-risk to obtain affordable coverage on the traditional house insurance market can usually purchase a government-sponsored policy. Your state department of insurance will have more information about these policies.