Are you wondering how much does home insurance cost? Most likely you are if you are in the midst of buying a house. The answer to this age-long question depends on 4 factors :

• Your Stats – Who are you, what is your occupation, what you own, how do you live, etc. All these factors determine how much insurance companies charge you the premium.

• Your Home’s Value – How much is your home replacement cost? The figure will influence your home insurance cost as well.

• Which Insurers? – Different companies charge different price. And the difference can be very big at times.

• Any Discounts? – Many insurers provide discounts to reward behaviors that reduces risk. As a result, you can reduce your insurance cost.

So, having said all the above,  How Can You Reduce Your Home Insurance Cost?

There are 7 Ways to that can help you do that.

1. Shop Around

You can potentially save a considerable sum of money by shopping around. Ask your friends, check the Yellow Pages or contact your state insurance department. National Association of Insurance Commissioners (www.naic.org) has information to help you choose an insurer in your state, including complaints. Also check consumer guides, insurance agents, companies and online insurance quote services. This will give you an idea of price ranges and tell you which companies have the lowest home insurance cost price. But don’t consider price alone. Check the financial stability of the companies you are considering with rating companies such as A.M. Best (www.ambest.com) and Standard & Poor’s (www.standardandpoors.com) and consult consumer magazines. When you’ve narrowed the field to three insurers, get price quotes.

2. Raise Your Deductible

Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums. Nowadays, 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 percent.

3. Buy your home and auto policies from the same insurer

Certain insurers that sell homeowners, auto and liability coverage will take 5 to 15 percent off your premium if you buy two or more policies from them. This can significantly cut down your home insurance cost. Having said that, do ensure the combined price is lower than buying the different coverage from different companies.

4. Make your home more disaster resistant

Find out from your insurance agent or company representative what steps you can take to make your home more resistant to windstorms and other natural disasters. You may be able to save on your premiums by taking measures such as adding storm shutters, reinforcing your roof or buying stronger roofing materials.

5. Improve your home security

You can usually reduce your home insurance cost by at least 5 percent with the installation of a smoke detector, burglar alarm or dead-bolt locks. In addition, some companies offer to cut your premium by as much as 15 or 20 percent if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations.

6. 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. Some insurers will reduce their premiums by 5 percent if you stay with them for three to five years and by 10 percent if you remain a policyholder for six years or more. Nonetheless, do periodically compare the price with that of other policies.

7. Maintain a good credit record

Establishing a solid credit history can cut your home insurance cost. Insurers are increasingly using credit information to price homeowners’ insurance policies. In most states, your insurer must advise you of any adverse action, such as a higher rate, at which time you should verify the accuracy of the information on which the insurer relied. To protect your credit standing, pay your bills on time, don’t obtain more credit than you need and keep your credit balances as low as possible.

From today onwards, take the above 7 ways in mind when you are trying to establish an ideal insurance premium that you can afford. Too many homeowners ended up paying sky high premiums because they did not how to reduce their home insurance cost. Not you. So start saving today.