Insurance for your home

About 88 percent of homeowners and 23 percent of renters have home insurance but only six percent of homeowners have a government subsidized insurance policy such as flood insurance. Typically, What you usually pay for your homeowners insurance can vary by hundreds of dollars depending on a number of factors, including the company from which you buy your policy, where you live, and how high you’ve set your deductible. Nowadays, most insurance companies recommend a deductible of at least $500. If you can afford to raise that to $1,000, you may save as much as 25 percent of the premium.

If you reside in a disaster-prone area, your insurance policy may have a separate deductible for certain kinds of damage, such as that caused by windstorms, hailstorms, or earthquakes. But there are things you can do to make your home more resistant to windstorms and other natural disasters: Add storm shutters, reinforce your roof, or buy stronger roofing materials. Older homes can be retrofitted to make them better able to withstand earthquakes. In addition, consider modernizing your heating, plumbing, and electrical systems to reduce the risk of fire and water damage. You can usually get discounts of at least five percent off your insurance for a smoke detector, burglar alarm, or dead-bolt locks. Some companies offer to cut your premiums by as much as 15 or 20 percent if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at police, fire, or other monitoring stations. You can also explore getting a group insurance homeowners policy through professional, alumni, and business groups.

If you have kept your coverage with a company for several years, you may receive a special discount for being a long-term policyholder. Some insurers will reduce their premiums by five percent if you stay with them for three to five years and by ten percent if you remain a policyholder for six years or more. But make certain to periodically compare their price with that of other companies’ policies to be sure it really is a good deal. Review the limits in your policy and the value of your possessions at least once a year.