Raise your deductible

In a series of posts this week and next, I'm offering some suggestions on how to save money on your homeowners insurance premiums. Today's money-saving tip is to raise your deductible - this puts money in your pocket.

The amount you pay toward your loss (prior to your insurance company paying the claim) is your deductible. The norm is $500, but the higher the deductible, the lower your rates will be. This is because you are taking more of the risk up front. By doubling the deductible, it is possible to save up to 25% off your premium!

A word of caution, though. Don't put yourself in a spot where you can't afford the deductible. Risk only what you know you can cover if you need to file a claim.