Homeowner's Insurance:12 Ways to Save

1. SHOP AROUND Ask friends, check the phone book, call your state insurance department, check consumer guides, insurance agents and online quote services.

2. RAISE YOUR DEDUCTIBLE Most insurance companies recommend a deductible of at least $500. If you can afford to raise your deductible to $1,000, you may save as much as 25%.

3. BUY YOUR HOME & AUTO POLICIES FROM ONE INSURER Some companies will take 5% to 15% off your premium if you buy two or more policies.

4. MAKE YOUR HOME MORE DISASTER-PROOF See what steps you can take to make your home more resistant to natural disasters.

5. DON'T CONFUSE YOUR PURCHASE PRICE WITH REBUILDING COSTS Don't include your land value when deciding how much insurance to buy.

6. IMPROVE YOUR HOME SECURITY Some companies will discount as much as 15% to 20% if you install a sprinkler system and a fire and burglar alarm that notifies police, fire or other monitoring stations.

7. SEEK OUT OTHER DISCOUNTS Ask your agent or company representative about any discounts available to you.

8. SEE IF YOU CAN GET GROUP COVERAGE Professional, alumni and business groups often work out an insurance package with an insurance company, which includes a discount for association members.

9. STAY WITH THE SAME INSURER If you've kept your coverage with a company for several years, you may receive a special discount for being a long-term policyholder.

10. REVIEW THE LIMITS IN YOUR POLICY AND THE VALUE OF YOUR POSSESSIONS AT LEAST ONCE A YEAR

11. LOOK FOR PRIVATE INSURANCE IF YOU ARE IN A GOVERNMENT PLAN You may find that there are steps you can take that would allow you to buy insurance at a lower price in the private market.

12. WHEN YOU'RE BUYING A HOME, CONSIDER THE COST OF HOMEOWNER'S INSURANCE Choosing wisely could cut your premiums by 5% to 15%.