Homeowners Insurance: 7 Tips for Texans

Save on homeowners insurance

Here are seven ways to cut the cost of your home insurance.

1. Shop around - and do it early!

Check with several different home insurance compainies to get rate quotes. (An independent insurance agent can provide rate quotes from a variety of companies.) And definitely do it well before you policy expires, just in case you run into any snags along the way.

2. Raise your deductible

The deductible is the amount of money you have to pay toward a loss before your insurance kicks in. Home insurance deductibles may start around $250. However, if you increase your deductible to:

$500, you'll save up to 12% on your premiums

$1,000? Save up to 24%

$2,500? Save up to 30%

$5,000? Save up to 37%

3. Buy you home and auto policies from the same company

Many companies will give what's called a "multi-line" discount if you buy both home insurance and auto coverage from them.

4. Don't skimp when buying a home

If you're looking at buying a home, think about the cost of insuring the home. A newer home's electrical, heating, and plumbing systems and overall structure are likely to be in better condition than those of an older home - and can lead to a discount on your premiums.

5. Insure your home, not the land

While your home and its contents are at risk from fire, theft, windstorms, and other perils, the land your home sits on is not. Don't include the value of the land in deciding how much home insurance you need to buy.

6. Improve security and safety

Items such as dead-bolt locks, burglar alarms, and smoke detectors can usually bring discounts of 5% each. Your insurance company may also offer a significant discount of 15% or sometimes even 20% if you install a sophisticated home security system.

7. Check your policy annually

You policy should reflect the value of your home and belongings. If you review you policy every year, you can easily make the necessary adjustment. If, for example, you just sold a valuable painting, you won't need to same amount of personal property coverage. But if you've added a garage or other addition, you'll need to increase your dwelling coverage.

This free report is provided to you by Lynnette Wallace, Your Hat Lady in Real Estate and Help U Buy Realty. For more information, please call 817-454-3641 or e-mail HatLady@HatLadyRealEstate.com.