Unless you live in a very volatile area, chances are your homeowner’s insurance premiums are fairly standard. But one thing that many people do not realize is that they can actually have an impact on the amount they are charged for insurance.

There are several factors involved in a homeowner’s insurance premium calculation and if you play your cards right you may be able to end up with sizable savings. Homes that are located in areas that exhibit frequent and volatile storms or acts of nature on a regular basis – such as earthquake zones, hurricane prone areas and tornado belts will obviously see larger premiums. And seasonal weather changes like hail or windstorms will also have an impact on the rate you will pay for insurance on your property. But for the most part, there are ways to save on insurance.  Here are four factors that you can control that will help you to save money.

Cut Down Those Claims

The single biggest impact you can have on your insurance premium rates is the number of claims you file. This is largely applicable to those claims you have control over. Acts of nature will impact your rates less than deliberate or reckless occurrences such as a fire that occurs during a cookout. Be mindful of the number of claims you file and it will keep your insurance premiums down.

Spruce Up Your Credit

Like with everything else, insurance companies also want to know that you are responsible in handling your finances – in fact they rate homeowners (and others) with an insurance score that is similar to a credit score. An insurance score takes into consideration your credit, claims history, property location and value. It is essential to get and keep good credit. Paying bills on time, avoiding late payments and demonstrating solid financial responsibility translates to lower premiums because insurance companies know they can count on you.

Choose Location Wisely

One factor that many people do not realize is how close the property is to the local fire department. The further away from a fire department the home is located the higher your insurance premium will be. In fact, your insurance premium can go as high as 50% to 60% higher than if you lived closer. The reason is the added risk of total loss since it would take them that much longer to get to your location.

Go For Higher Deductibles

At one point, deductibles for homeowner’s insurance were lower than they typically are today. Where they were once only $250 or $500 per claim, deductibles for most policies are now $1,000 with some people opting for even higher amounts – as much as $5,000. There are two reasons for the higher deductibles; not only do they serve as a deterrent from smaller claims but also homeowners receive a break on their premium.


If you would like more information about how you can positively impact the cost of your homeowner’s insurance – or for any other property and real estate related inquiries, please contact us today!