There are many ways of cutting costs on homeowners insurance. There are drastic risks to understand when doing so though as almost all require a greater out of pocket expense on your part in case of an incident. One of the easier and faster ways is to simply shop around for home insurance though. The guidelines that companies use to write policies change annually and it’s possible that your insurance has been taking a more conservative risk approach in your area, while another insurer has eased up or simply wants to attract additional business. This means that you could see as much as a 30% to 40% reduction in rates if you get lucky and move insurance providers, just be wary for the underlying ratings and reputation of the insurers. Make sure they’re definitely state licensed and approved before getting into a policy and check the internet for complaints of impossible to get payouts.

If you’re most comfortable with your current insurer or shopped around and found no differences there are still other ways you can cut costs on homeowners insurance. One way is to simply raise your deductibles. These are the out of pocket expenses that you’re responsible for paying for regardless of the nature of the incident. Maybe you were previously only safely capable of covering the first $1,000 of any damage to the home but now you’re financially able to cover $10,000 and are willing to take that risk. Increasing your deductible to this amount would drastically cut your premiums.

Another option is to see if you’re doubly or triply covering certain expenses. Sometimes homeowner policies also come with medical riders, but if your medical insure is good, then you wouldn’t ever actively use the medical part of the home insurance policy. Another possibility is that if you’re willing to take on a lot more risk, then you can lower the total insured payout in case of a total loss. If you have a mortgage, your bank is going to want a policy that pays out at least the mortgage amount, but if you’ve been paying off the mortgage for a while, then you can reduce this insurance payout to simply the amount of the mortgage if you’re willing to take on that risk.