Five Tips to Reduce Homeowner's Insurance

Changing deductibles isn't the only way to save money on your home insurance.

Nobody wants to pay more than he needs to for his homeowner's insurance. If you thought that the only thing you could do to reduce your payments would involve changing the coverage levels and deductibles, you're missing out on some simple discounts that could save you money, while keeping your coverage complete.

1. Technogadgets

Insurance companies love when you remove the element of human error from the risk equation, so you'll get a discount on your premium for installing security systems, fire alarms, and other monitoring devices that are linked to a central monitoring service. If your gas line springs a leak when you're not home, or a prospective burglar opens your window in the dead of night, help should be on the way before you know that there's a problem. Make up for the installation costs with discounts on your insurance bill.

2. Disaster preparedness

Storm shutters in Florida, shatterproof glass in the San Andreas valley, and impact resistant roofing in Wyoming, are all safeguards against natural disasters. These kinds of emergencies are so predictable that you should be prepared for them. Not only will you save yourself from danger at the hands of Mother Nature, but your insurance will generally get cheaper when you tell the insurer about your protections.

3. New or renovated home

If your home was built or substantially renovated in the last 15 to 20 years, most insurers will knock a few dollars off your invoice. These modernized houses are likely to meet stricter building codes, the materials haven't faced much wear and tear, and the risk of rebuilding the whole structure should be lower, compared to an older home.

4. Customer loyalty

Expect a credit for insuring your home and car through the same company. Boats, RVs, and motorcycles might help, too; it doesn't hurt to ask. Some insurers offer further discounts for simply staying on the customer list for a long time, and others reward "safe homeowners" who haven't filed a claim in the last few years.

5. Miscellaneous discounts

All the rebates discussed so far can be substantial, each one presenting as much as a 15 perfect discount on its own. But stack a few smaller discounts on top of each other, and the savings can add up quickly. Live in a gated community, and potentially get a 5 percent bonus thrown in. Insure your home up to the cost of replacing the structure instead of the fair market value of the entire property, and there's another small break. Non-smokers can save a buck, as can first-time buyers, or AARP members. A few insurers even give you credit for adjusting the coverage to keep up with inflation over the years.

A penny here and there adds up to serious cash throughout the life of your home. Your insurance company will love you for keeping a safe residence, and you'll enjoy both the security and the savings.