What are some ways to save money on homeowners insurance? In the days of “recession chic” behavior due to the housing crisis, everyone seems to be looking for ways to save money. But homeowners and investors may be ignoring a place where they can save money which is right under their noses … and their feet: their home. Learn how to save money on homeowners insurance in the article below.

A recent survey by Trusted Choice and the Independent Insurance Agents & Brokers of America (Big “I”) revealed that very few consumers are taking full advantage of potential discounts on their homeowners insurance. In fact, more than 34% of the respondents, representing 53 million homeowners, said they didn’t know if they were using all the potential discounts for which they might be eligible.

“The latest survey shows what we suspected: many Americans could be foolishly throwing money away because they fail to ask about insurance discounts for which they may qualify,” says Madelyn Flannagan, Big “I” vice president of agent development, education and research. “Companies often offer some unique, regional, very specific and, at times, quirky discounts. In these economic times, every dollar counts—some consumers may be able to nickel and dime their way to big savings.”

Investors Can Save Big with Homeowners Insurance Discounts

The survey found that most consumers think they can save 6 to 10% on their insurance by looking into discounts, but Trusted Choice and the Big “I” say that, in reality, the savings could be as big as 30%.

For investors who own multiple properties, saving 30% on the insurance on each investment property could make a deep dent in their monthly payments, thus increasing their profits.

In fact, investors should contact their homeowners insurance company and ask if any discounts are available for individuals who have multiple insurance policies. Companies give discounts for customers who keep both their auto and homeowners insurance business with the same insurance company, so they might be willing to do another discount for a client with more than one home.

Homeowners Insurance Discount Tips

In addition to asking for a multiple policy discount, investors can check with their insurance company or work with an independent insurance agent to see if they qualify for some of these other discounts on their properties.
• If the property has alarm systems such as a burglar alarm, fire alarm, sprinklers, a security system or even deadbolt locks, a discount may be available.

• Some discounts are available for graduates of universities on an approved company list.
• If you haven’t had a claim in 10 years, you could qualify for a “claims-free” homeowner discount.
• Some companies offer a discount for properties within a gated community.
• A discount may be available for a property with newer electrical wiring.
• Depending on the composition of the roof, a discount may be available for a “hail-proof” roof.
• Check your credit score. If you own property with someone else, put the name of the person with the best credit score on the top of your insurance policy and your rates may go down.
• Some companies are developing new rating models for new customers. See if you can apply for a new policy to get that better rate.

Even if you only save a small percentage on each homeowners insurance policy, this can add up to a better bottom line each month, especially if you're trying to make money via an investment property.

Michele Lerner, a real estate expert and freelance writer with 20 years of experience, is the author of “HOMEBUYING: Tough Times, First Time, Any Time”.