Don’t skimp—but do shop around

Having homeowners insurance is undoubtedly an expense—but it is also your protection against potential disaster and financial ruin. Homeowners policy prices vary from company to company, so do some comparison shopping and get the best deal you can.

• Ask friends and relatives for recommendations for insurers and then do your due diligence.
• Contact the state insurance department to find out whether they make available consumer complaint ratios by company. If they do, check into the insurers you’re considering doing business with.
• Check the financial health of prospective insurance companies by using ratings from independent rating agencies and consulting consumer magazines for reviews.
• For price quotes, call companies directly or access information on the Internet. Your state insurance department may also provide comparisons of prices charged by major insurers.
• Get quotes from at least three companies.
• Don’t shop price alone. Remember, you’ll be dealing with this company in the event of an accident or other emergency. When you need to file a claim you’ll want an insurer that provides good customer service, so test that while you’re shopping, and choose a company whose representatives take the time to address your questions and concerns.

Raise your deductible

A deductible is the amount of money that you are responsible for paying toward an insured loss. The higher your deductible, the more money you can save on your premium, so if you can pay above the minimum $500 or $1,000 deductible, for example, you may reduce the cost of your homeowners policy.

If you live in a disaster-prone area, your insurance policy may have a separate deductible for damage from major disasters, so be sure you take this into account when considering whether to raise your standard homeowners deductible.

Buy your home and auto policies from the same insurer

Many companies that sell homeowners insurance also sell auto insurance and umbrella liability policies. If you buy two or more insurance policies from the same provider, you may be able to reduce your premium. To be sure you’re getting the best price, make certain any combined price from one insurer is lower than buying the coverages separately from different companies.

Make your home more disaster resistant

If you live in a disaster prone area, you will have more insurance options to choose from if you take certain preparedness steps— for example, installing storm shutters and shatterproof glass or reinforcing[…]

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