Save money on home insurance

As 2013 wraps up, homeowners everywhere will begin to buckle down on their finances, as more Americans have resolved to save money as a New Year's resolution than ever before, according to a study by Fidelity. As a simple way to save money, here are few tips for reducing your homeowners insurance next year:

Buy new
If you're shopping for a home next year, consider making a new-home purchase, as insurance companies are likely to give bigger discounts compared to policies for older homes. Because they have current equipment, new homes are less likely to have something go wrong with their electricity or wiring, reducing the chances that you will file a claim. For this reason, insurance policies are usually cheaper for newer homes. If you are house hunting in the new year, consider looking into a new-home construction and think about the savings.

Insure the house, not property
If you were to be hit by a nasty superstorm or lose your possessions from a fire or burglary, it is unlikely that you would need coverage for your land. Chances are, no one is going to steal your grass. As land can greatly enhance the value of a property, you could end up paying a lot more if you include it into your homeowners insurance policy. Instead of insuring everything on your property, just include your home and belongings to reduce the cost.

Stick with your company
If you're already happy with your homeowners insurance policy and the customer service your company provides you with, it might be worthwhile to stick it out with them. It's always a good idea to shop around every once in a while to compare benefits and prices, but some companies may offer you a loyalty discount if you remain with them for a number of years. Sometimes these can be as high as 5 percent after three years and 10 percent after at least five years of service.

Insure what you've got
Most home policies come with an automatic amount for coverage when it comes to personal belongings. However, some homeowners might not know that this rate is adjustable and you could be paying for too much coverage. Conversely, it is possible that you don't have enough coverage for everything you own. Take into account all of your possessions for a property value. An insurance agent can help you create an estimate and get you the right coverage amount. If you have been paying for too much, you could find savings by doing a quick check.

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