Homeowners insurance is not required by law in Wisconsin. However, if you have financed the purchase through a bank or mortgage company, your lender will no doubt require you to buy coverage to protect their financial interest. Moreover, it's wise to protect your investment and your personal property. It also provides personal liability coverage that pays any repair, medical, or legal costs if you accidentally injure someone or damage property. Nevertheless, it pays to save money where you can. Here are some tips for reducing your homeowners insurance premiums.

How to Lower Your Homeowners Insurance Premiums

1. Raise Your Deductible

Your deductible is the amount you must contribute to a claim before your insurer must start paying out. That way, you will presumably mitigate losses and not purposely cause damage while expecting the insurer to pay it all. The lower your deductible, the less you must pay out on a claim and the more you must pay each month in premiums. You can reduce monthly payments by raising the deductible and absorbing some of the risks.

2. Add a Security System

Part of what your monthly premium covers is the risk of intruders breaking into your home and stealing property or injuring themselves. You can save money by reducing your insurer's risk exposure to this type of event. A monitored home security system alerts security personnel if unexpected access is made into your premises. Many insurers offer a premium discount for installing such a system.

3. Improve Your Credit Rating

One of the factors insurers use to allocate risk is your credit report. They have evidently found a correlation between responsible credit use and fewer insurance claims. Because of this, if you have a history of late payments and derelict credit accounts, you will pay more each month for homeowners insurance. You can lower your rates by making payments on time, maintaining good relationships with existing creditors, and avoiding charge-offs and bankruptcy events.

To have a friendly, experienced insurance agent help you design an affordable homeowners insurance policy, contact Barron Mutual Insurance Company in Barron County, WI. They have served clients throughout northwestern Wisconsin since 1891. Today, they specialize in homeowners, rental property, light commercial, mobile home, and farm insurance. Visit their website or call (715) 537-5141 to request a homeowners insurance quote.