3 ways to lower your home insurance

Most people freak out when they notice their home insurance costs are higher than average. Home insurance can be expensive but you may not notice because it's included in the mortgage payment. Still, home insurance premiums can fluctuate by hundreds of dollars. If you play your cards right, you can be on the low side of those premium costs; provided you know what factors lower them.

Your insurance provider Most people purchase their home insurance policy from the company their mortgage lender recommends. They take the first option and don't compare different policy prices – often in a hurry to close the purchase. The problem? High premiums. Contact other insurance providers to get quotes for comparable coverage. The secret? Your car insurance carrier may offer you the best option. When an insurance provider already offers coverage on one type of insurance, they often offer discounts of up to 20% on other insurance products.

The deductible When buying home insurance many rarely listen to the insurance provider when s/he covers the information in the policy regarding the deductible. Many homeowners assume there is only one option. However, what providers don't tell you that by raising your deductible by a couple of thousand dollars, you could save as much as 25% on your premiums.

Home improvements Most people don't realize that improvements could reduce their insurance costs. If you recently made your home disaster resistant by installing shutters, reinforcing the roof or buying and installing stronger home-improvement materials, an insurance provider could offer you substantial savings on your homeowner's policy… and help mitigate the cost of the improvements you made.

Bottom line You'll also want to review other aspects of your insurance policy that could save you money. For instance, you'll want to review the policy to make sure you don't have more coverage than you need. Many homes are valued for both the construction and the property. Remember you only need the replacement value on the construction. To be on the safe side and ensure you get the best savings possible, review every aspect of the policy you're offered. Take a few days to read over each offer made. You'll make a better policy decision if you take your time in reviewing the options.

Adam Vaught enjoys blogging about ways people can save money. His articles mainly appear on personal finance websites.