Homeowners’ insurance isn’t a luxury, it’s a necessity. In fact, most mortgage companies won’t make a loan or finance a residential real estate transaction unless the buyer provides proof of coverage for the full or fair value of the property (most of the time this is the purchase price). The good news is that although you can’t (and shouldn’t) avoid purchasing homeowners’ insurance, there are ways to minimize the cost: Maintain a security system and smoke alarms (A burglar alarm that is monitored by a central station, or that is tied directly to a local police station, will help lower the homeowner’s annual premiums, perhaps by 5% or more); look for multiple policy discounts (many insurance companies give a discount of 10% or more to their customers that maintain other insurance contracts under the same roof (such as auto or health insurance)); pay jff your mortgage (obviously this is easier said than done, but homeowners that pay off their mortgage debts will most likely see their premiums drop)

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