The cost of homeowners insurance is influenced by a wide array of market factors such as increasing number of liability lawsuits and customer's needs, policy choices and lifestyle.
You should always keep in mind the difference between market value and replacement value. Ensure that your home is insured "to value" which adequately protects it from risks you cannot afford to cover yourself, and covers any home improvements you've made, major purchases, and increased costs of rebuilding.
Some companies offer discounts and credits for loss prevention features such as fire extinguishers, sprinkler systems, alarms, smoke detectors, deadbolt locks, and security or fire alarm systems. If you're over 55 and retired, you may qualify for an additional 10% discount.
If you are a dog owner, you may have to think twice about the breed you choose. Large dogs that can inflict a lot of damage are prime "no-insure" targets. Other considerations that influence a company's willingness to cover a breed include the frequency of dog bites for the breed, the breed's reputation as well as research conducted by the Centers for Disease Control and individual insurance companies.
Raising your deductible can also significantly lower your premiums. Small claims are expensive for insurance companies to handle. You can reduce your premiums by as much as 10 percent if you increase your deductible from $250 to $500. Increasing the deductible to $1,000 can lower premiums by almost a third. The payment plan you choose also determines you cost.
Buy your homeowner's and auto insurance policies from a company that offers both. It may offer discounts of 5 to 15%.
Shop around! But keep in mind that you may be receiving a longevity discount.