Insurance is a highly competitive business and the price you pay for your homeowners insurance can vary by hundreds of dollars, depending on your personal circumstances and the insurance company you buy your policy from. Companies offer many types of discounts, so it’s important to ask your agent or company representative about discounts available to you. Here are some important ways to save money and make sure you have the right coverage when you buy homeowners insurance.

Raise Your Deductible

Deductibles are the amount of money you agree to pay toward an insured loss before your insurance company pays the remaining amount, up to the limits of your policy. Deductibles on Homeowners policies typically start at $250.  Increasing your deductible to $500, could save you up to 12 percent; a deductible of $1,000, up to 24 percent; $2,500, up to 30 percent and $5,000, up to 37 percent, depending on your insurance company.

Buy Your Home and Auto Policies From the Same Insurer

Many companies that sell homeowners, auto and umbrella liability coverage will give you a five- to 15-percent discount if you buy two or more policies from them.

When You Buy a Home...

Consider how much it will cost to insure it.  Because a new home's electrical, heating and plumbing systems and overall structure are likely to be in better condition than those of an older house, insurers may offer you a discount of 8 to 15 percent if your house is new. Also find out if your town has a full-time or volunteer fire service?  And is your house close to a fire hydrant and fire station?  The closer your house is to firefighters and their equipment, the lower your premium is likely to be.

Insure Your House, Not the Land

 The land under your house isn't at risk from theft, windstorm, fire and the other perils covered in your Homeowners policy, so don't include its value when deciding how much Homeowners insurance to buy.  If you do, you'll pay a higher premium than you should.

Beef up Your Home Security

You can usually get discounts of at least five percent for a smoke detector, burglar alarm and/or dead-bolt locks.  Some companies may offer to cut your premium by as much as 15 or 20 percent if you install a sophisticated fire suppression sprinkler system and a fire and burglar alarm that alerts the police or another monitoring facility.  Before you buy a burglary prevention or fire suppression system, find out what systems your insurer recommends and what sort of discounts it may offer.

Stop Smoking

Smoking accounts for more than 23,000 residential fires a year.  That's why some insurers offer to reduce premiums if all of the residents in a house don't smoke.

Seek Discounts for Seniors

 Retired people stay at home more and spot fires sooner than working people. Retired people have more time for maintaining their homes, too.  If you're at least 55 years old and retired, you may qualify for a discount of up to 10 percent with some companies.

Consider staying with one insurer

If you've kept your coverage with a company for several years, you may receive special consideration.  A number of insurers will reduce your 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.

Compare the Limits in Your Policy and the Value of Your Possessions at Least Once a Year

You want your policy to cover any major purchases or additions to your home, but you don't want to spend money for coverage you don't need.  If you have special coverage on high-value items, such as furs, jewelry or fine art, be sure to have them appraised regularly and adjust your coverage accordingly. For example, if your five-year-old fur coat is no longer worth the $20,000 you paid for it, you'll want to reduce your special coverage endorsement amount and pocket the difference.