Most people know and understand that you can lower the monthly premium on your Boston area homeowners insurance by raising your deductible. But whether it makes sense to do so can vary.

The deductible is the amount of a loss you must cover out of pocket. The deductible for a Boston area homeowners insurance policy typically ranges from $500 to $1,000, but may be as low as $250 or as high as $5,000.

An analysis done for an online insurance site found that raising a deductible to $2,000 from $500 lowers the average annual premium by a wide range, depending on where you are, anywhere from 6 to 40 percent.

For the analysis, the study was based on premiums for a two-story, single-family home insured for $140,000 (which is a price range that is a challenge to even find anywhere these days).

The catch of a much higher deductible, of course, is that you risk not having enough cash on hand to cover the deductible if you need it. Many Americans lack significant savings, so paying several thousand dollars to cover a major loss may be a stretch.

Homeowners with a robust emergency fund can afford to raise their deductible, but if you’re living paycheck to paycheck, or if you’re not a consistent saver, be careful. Plus, if you raise your deductible significantly, that means you’ll be responsible for more minor damage. You’ll be self-insuring for smaller losses.

Other Ways to Save on Boston Area Homeowners Insurance

Many insurers offer discounts if you buy multiple policies, like Boston area homeowners insurance and automobile coverage, or if you take steps to reduce risk, like installing security or sprinkler systems. Others may offer a discount if you have your premium automatically deducted from your bank account. So you should check with your insurance agent.

Also, according to the Insurance Information Institute, If you’re at least 55 years old and retired, you may qualify for a discount of up to 10 percent from some insurers (the rationale being that you’re probably at home more, so you may spot potential problems more quickly).

To get more information on Boston area homeowners insurance and how premiums are calculated for different homes and different coverages, check out our other articles over in the Boston area Insurance section under Boston area Real Estate Categories.

We also offer tips on a daily basis on Twitter and our Facebook Page. Some of which may deal with Boston area homeowners insurance. Check us out there as well.

Boston area homeowners insurance is something many home buyers don’t have first and foremost on their minds when thinking of buying a new home, but your Boston area homeowners insurance could add up to a major expense  if you don’t keep some things in mind.

Depending on your ‘up front’ rate, there are some things that could make your Boston area homeowners insurance rate rise in the future to become a major expense. With added risks, homeowners should take action to do all they can to prevent home insurance from spiraling out of control.

Here are some tips to avoid higher Boston area homeowners insurance costs in the future…

Keeping Boston Area Homeowners Insurance Rate Increases to a Minimum

Rethink certain home additions – Although adding a new feature to the home like a swimming pool seems like a great way to boost the home’s value and fun at the same time, adding on a pool may increase your Boston area homeowners insurance. Attractions like swimming pools will likely lead to a greater chance that someone will be involved in an accident and having a liability claim could result in higher insurance rates.

Keep credit accounts current – Lenders usually look at credit scores to calculate Boston area homeowners insurance rates and if homeowners do not keep their accounts in good standing, this could mean elevated rates. Make sure to pay credit obligations on time, avoid unnecessary debt and do not close older accounts to keep credit scores high.

Choose your next home’s location carefully – Boston area homeowners insurance costs could be lower by moving to homes that are relatively new. House hunters should look for houses that have electrical, heating and plumbing systems that are less than 10 years old. There are also certain safety features near homes that could make a difference, such as if a fire hydrant is close to the property. Prospective homeowners looking to find a home that could reduce their Boston area homeowners insurance costs can contact us to learn more about finding a home with potentially lower insurance costs.

Find more articles pertaining to saving money on your insurance costs under our Boston Insurance Info to your right under Boston Real Estate Categories.

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You should give careful consideration before even filing a Boston area homeowners insurance claim. Filing just one claim — even a small one — can send your premiums soaring through the roof (no pun intended!)

Factors Affecting Boston Area Homeowners Insurance Rates

According to a new study from InsuranceQuotes.com, the average premium increase is 9 percent for the first claim. Even a denied claim can cause your premium to go up. Make sure to know your policy’s specific guidelines and only file a claim when absolutely necessary. Winning a small claim could actually cost you money in the long run.

The type of Boston area homeowners insurance claim also matters. Liability claims, such as from personal injuries, are the most expensive type of claim, with insurers raising premiums by an average of 14%.

Other claims that lead to big premium increases are theft and vandalism, which often indicate that the home is in a neighborhood that is unstable or possibly falling prey to various forms of contamination or corruption. In bad neighborhoods, these crimes can recur, and the high premiums reflect that.

Once your Boston area homeowners insurance premiums are raised, it can be difficult to get them reduced.

Insurers keep a database called the Comprehensive Loss Underwriting Exchange, or CLUE, which tracks seven years’ worth of your auto and property insurance claims, as well as any inquiries you may have made about a claim. The database then compiles a report based on your claims history that is then used to determine whether to cover you and how much to charge. The information is available to all insurers so even if you switch providers, your rate with the new carrier may be just as high.

Ways to Try and Keep Boston Area Homeowners Insurance Costs Down

Raise your deductible. But not so high that you can’t afford to pay out-of-pocket costs if damage occurs.

Don’t make small claims. Getting a few hundred dollars back if a tree limb falls on your shed may feel good but you could be paying that back to your insurer over the next few years — and then some.

Don’t use Boston area homeowners insurance as a maintenance tool. Don’t file a claim to pay for small repairs, such as when wind blows some old shingles off your roof. Use it for catastrophic repairs only.

Shop around often. Look for quotes once a year. There’s lots of competition in the industry and you may be able to buy equal coverage and service for a lower price.

Get more Boston area homeowners insurance information in our section on Boston Insurance to the right under Boston Real Estate Categories.

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