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Homeowners insurance premiums rose over 8 percent in 2004, according to the Insurance Information Institute. More prevalent storms, hurricanes, floods, and wildfires are the biggest culprits behind the increase. Blame mold claims and stock market losses by insurance companies, as well. To obtain insurance at a good rate:

1. Review the Comprehensive Loss Underwriting Exchange (CLUE) report on the property youre interested in. CLUE details the propertys claims history for the most recent five years, which insurers may use to deny coverage. Make the sale contingent on an home inspection to ensure that problems identified in the CLUE have been repaired.

2. You can save money by having a higher deductible on your policy. Typically, insurance companies will start giving discounts at a $500 deductible and increase the discount as your deductible increases. Most companies offer deductibles up to $10,000. Be careful, however, because many mortgage companies will not allow you to exceed a $1,000 deductible, so check with your lender before opting for a higher deductible

3. Seek insurance coverage as soon as your offer is approved. You must obtain insurance to buy. And you dont want to be told at closing that the insurer has denied your coverage.

3. Maintain good credit. Increasingly, insurers are using credit-based insurance scores to determine premiums.

4. Buy your homeowners and auto policies from the same company and youll usually qualify for savings. But make sure the discount really yields the lowest price.

5. Ask about other discounts. Make sure that you are getting all of the credits for which you are eligible. If you have an alarm system that reports to a central station (a company such as Brinks or ADT), in some cases, you can get up to a 10% discount. If you are over 50 and care to admit it, you may be eligible for a discount. Companies have different names for age preference policies, from senior discount to mature policyholder discount.

6. Seek group discounts. If you belong to any groups, such as associations or alumni organizations, they may have deals on insurance coverage.

7. Investigate a government-backed insurance plan. In some high-risk areas, federal or state government may back plans to lower rates. Ask your agent.

Krista Collins
Licensed Realtor in Delaware specializing in helping people buy their homes
http://www.themoveyouwant.com