Saving money on building and contents insurance is one of the best ways to free up extra funds that can be best spent elsewhere. Homeowners and home renters alike both need contents insurance coverage to protect their existing financial security. Still, there is no reason why they should pay the highest premiums for this coverage, since simple changes to a residence can result in contents insurance premiums that are far more affordable. Part III of this article series looked at some of the general ways people can save on their insurance premiums. This article will focus on the ways in which homeowners and renters can save money through additional security measures for their residences.


Loss Prevention Is Key to Building and Contents Insurance Savings

Like every other industry, the home insurance industry rightly seeks to maximize profits and minimizes expenses. Lower loss payouts that insurers have to provide in the event of disaster or theft translates both into lower expenses and higher profits. This is why building and contents insurers are usually willing to offer lower premiums to homeowners who install security improvements that contribute to loss prevention. There are two main kinds of security measures that may translate into lower home insurance premiums: theft prevention and disaster protection.

Theft Prevention

Theft prevention security measures are any steps that homeowners or renters take to reasonably guard their contents from burglary. Having a monitored alarm system is the best way to achieve this theft prevention, and home insurers will usually charge lower premiums to those whose homes have a monitored alarm. Buying a home inside a gated community can be another way to get loss-preventing, premium-lowering security measures.

Disaster Protection

Building and contents insurance companies lose the most money on claims related to fires, hurricanes, earthquakes, and other natural disasters. Most homeowners insurance policies offer significant discounts to homes that have taken the appropriate steps to protect against losses from these natural events. Any improvements that can bring a building in line with the current local building codes are a must for saving money. Likewise, things like storm shutters and sprinkler systems can make an insurer willing to charge less for contents coverage and other home insurance.

Note of Caution

Homeowners should be aware that there is no automatic guarantee that the installation of disaster protection or theft prevention measures will lower their building and contents insurance premiums. The insurer should always be contacted before any work is done on the home in order to find out if these security tips will affect premium costs at all.


Saving money on building and contents insurance is not difficult when these simple steps are followed. Keep these tips in mind to get the best coverage for the least amount of money.