Cutting Costs on Home Insurance Premiums

05/06/2010

No matter how long homeowners pay them, they'll never go away.

This is why obtaining affordable home insurance premiums is important early on. The Insurance Information Institute offers advice for homebuyers hoping to factor insurance coverage into their property purchase, and highlights some ways they can bring costs down.

Build and location of a home play the biggest role in determining rates. Those situated close to a fire department are likely have lower premiums, according to the report, while houses easily exposed to high winds or water will cost more to insure. Flood and earthquake insurance may be necessary for some homebuyers.

Planning ahead can bring insurance premiums down for some consumers.

"Homes built by reputable builders using disaster-resistant materials and designed to meet current building codes are likely to better withstand natural disasters," the III said.

Homebuyers trying to save on insurance may also voluntarily raise their deductibles. This will increase the amount of out-of-pocket costs they'll be reponsible for before insurance kicks in. Those who take this approach should make sure that they have enough savings to recover from small damages.

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