Homeowners in need of a lower price on their homeowners insurance policies should simply shop their policy with other carriers or consider raising the deductible on their current policy. They should not short themselves on coverage. The last thing that should be done is to lower the coverage on a homeowners insurance policy to save money. The proper amount of coverage needed on a homeowners insurance policy is just that, the proper amount of coverage.
If homeowners are not able to find a rate that is within their budget they could also consider increasing the deductible on the policy. Many insurance companies offer higher deductible options. The exposure that the insured would have with a higher deductible would be significantly less than if you were to lower your coverage. Raising the deductible on your policy could save your hundreds of dollars per year.
The amount of personal exposure from raising the deductible on homeowners insurance is, simply, the amount of the increase. A policy that was written with a $1000 deductible and raised to a $2500 deductible exposes the homeowner to a potential of an increased $1500 out of pocket. This is a minimal expense when compared to lower the dwelling coverage or personal property coverage by tens of thousands of dollars. The decrease in premium would be close to the same between raising the deductible and significantly lowering the coverage.
If policy holders find that you are still in need of additional savings, they should shop their auto and homeowner insurance policies together. They would receive a discount on both policies. Generally, the discount for having multiple insurance policies with the same company will be around 10 percent per policy. If you pay $1000 per year on your auto insurance and are able to get the same rate with your homeowners insurance company, you would save $100 per year on your auto insurance.