Trimming frivolous expenses is a popular New Year’s resolution for many, but if you’re a homeowner, there are greater opportunities to cut costs. Save smart this year with these tips from the Insurance Information Institute (I.I.I.).

1. Raise your deductible. An increase from $500 to $1,000 could save up to 25 percent on your annual premium. Ask your insurer about all available discounts.

2. Insure for rebuilding cost, not real estate value. The amount for which you can buy or sell a home fluctuates, but insurance is designed to cover the cost of rebuilding your home – not the sale price. Make sure you have enough coverage to completely rebuild your home and replace all of your belongings in the event of a disaster.

3. Avoid dropping your flood insurance. It seems counterproductive to saving money, but damage from flooding is not covered under standard homeowners insurance policies. With 90 percent of all natural disasters involving some form of flooding, it’s worth researching flood zones and insurance costs and possibly elevating the structure.

4. Seek out satisfactory experiences. When selecting an insurance provider, enlist family and friends for recommendations. Their suggestions may point to a company with more costly policies, but sound finances and superior customer service will ultimately save you money.

Source: I.I.I.

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