Homeowners

When it comes to protecting your home, you don't want to take any risk, which is why most homeowners decide to invest in home insurance. The price of insuring your home is nothing compared to how much it would cost if something were to happen. Fortunately, you don't need to sell a kidney to get great coverage. Check out these top five tips to save on home insurance:

1. Take time to shop around
"My mama told me, you better shop around
Oh yeah, you better shop around… "

Just like Smokey Robinson says, shop around. When it comes to your home insurance, taking the time to compare insurance rates can make a big difference in how much you end up paying each month to cover your home. The first policy with a low rate might not be the best fit for you, your family or your home. Take into consideration the kind of risks your home might have and compare those against what type of coverage you would need to protect your property. The difference could end up being hundreds of dollars per year.

2. Raise your deductible
While this might seem backward, raising your deductible can lower your monthly premium. The amount of the deductible is how much you are responsible to pay before the insurance company. Once you meet your deductible, then your insurer will start paying for part of your claims. If you can afford to raise your deductible, you could end up reducing monthly payments. However, if you live in an area with certain damage risks, there might be separate deductibles for different damages such as windstorms, hail and earthquakes.

3. Seek out discounts
Homes that are updated have a reduced risk for filing a claim and insurance companies take notice. As a result, there are a bunch of ways to save by making your home safer through upgrades. Old wiring can cause more fires, but having new wires throughout can reduce your risk and have an effect on your premium. Other discounts might include new roofing and better home security systems.

4. Good credit
Your credit score is the number that most insurers will look at to see how likely you are to pay your bill on time. For better terms and a lower premium, maintain or improve your credit score rating. To do this, you should pay all your bills on time, reduce the amount of debt you owe, limit how many credit cards you have and keep your balances low.

5. Stop smoking
As the phrase goes: Where there's smoke, there's fire. Home insurance costs can increase if you are a smoker, as there is a greater risk of starting a home fire. If there is a smoker in the house, your monthly premium is higher than those who do not smoke. Kick the habit for better health and a lower rate.

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