NEW YORK (MONEY Magazine) -
Here's the essential homeowners' check list of what you can do to reduce the insurance bill on your home.
1. Shop around.
Get referrals from friends, check the Yellow Pages or call your state insurance department. Service, such as a timely response, is just as important as price.
Ask for quotes from at least three companies and check their complaint records with the National Association of Insurance Commissioners (www.naic.org).
2. Know your history.
When you ask for a rate quote, an insurer looks at your house's claims history.
See what the insurer sees by ordering your CLUE report (Comprehensive Loss Underwriting Exchange). It's $13 at www.choicetrust.com. You can challenge mistakes and submit updates.
3. File fewer claims.
With insurers raising rates and dropping policies if homeowners file frequent claims, you may be better off footing smaller repair bills.
4. Cover more yourself.
Raising your deductible from $500 to $1,000 will cut your premiums by as much as 25 percent.
5. Maintain good credit.
Insurers are increasingly using credit information to price homeowners' policies. You can get lower rates if you have good bill-paying and debt habits.
6. Bundle policies.
You can save 10 to 15 percent by buying your auto, homeowner's and liability policies from the same insurer.
7. Improve your home security.
You can get discounts of 5 percent or more for smoke detectors, a burglar alarm, fire extinguishers and deadbolt locks.
The break can be as much as 20 percent if you install a sprinkler system and a fire and burglar alarm that rings at a police, fire or other monitoring station.
8. Seek discounts.
Many insurers give discounts to longtime customers -- typically 5 percent after three to five years and 10 percent after six years.
Retirees, who are at home more than working folks and are less likely to be burglarized, may get discounts of up to 10 percent.
9. Review your policy once a year.
Make sure your policy covers any major purchases or additions to your home.
Remember that you'll need a rider or extra insurance for items such as expensive jewelry, computers and artwork, which aren't typically covered by standard homeowners insurance.
10. Make a list of your valuables.
You can do it with a notebook, camera or video recorder. Record as much detail as possible, including date of purchase, and keep receipts so you know what you paid.
Every time you buy a big-ticket item, add it to your home inventory, which should be kept outside your home -- in a safe-deposit box, for example.
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