Are you a penny pincher committed to the good life? We understand the desire to live large for less and we've got the penny pinchers insurance guide on exactly how to do it.

While a penny pincher can still live in a pimped out pad and save serious dough, you need a trick or two to get the best possible deal. If you’re a savvy saver, you already know that spending a little more now on key home features will save you big bucks when it comes to future (and inevitable) expenses like home insurance.

When it comes to insurance, your smartest strategy is to reduce risk. Huh? What you pay for a homeowners insurance policy depends on how much the insurer predicts you might end up costing them down the line. They base this decision on both you and your property's level of risk. So how can you put your best foot forward and beat this risky business? It's easy if you understand the game.

Penny Pinchers Insurance Guide: Less Is Not Best

The penny pinchers key to finding really cheap homeowners insurance isn't opting for a bare bones policy (because that would cost you more in the end). It's actually lowering your risk level and buying only the amount of insurance you need.

Once you've reduced your risk and determined what you need, be sure to shop around. Not all insurance companies are created equal when it comes to factoring your rate. Some will offer more discounts, others will have better prices for a savvy saver like you. So be sure to get several quotes before you sign on the dotted line.

Location, Location, Location

You've heard it before – and you're going to keep on hearing it!

Here’s a checklist of our penny pinchers insurance guide for reducing risk and insurance costs:

• Building costs in your area
• Amount of crime in the neighborhood
• Likelihood of damage from natural disasters, such as hurricanes and hail storms
• Where's the nearest fire hydrant (or other source of water) and fire station? Do you have a professional or volunteer fire service?

Lower building costs means your insurance company will pay less if they have to repair your home – so you pay less. Lower crime means your home is less likely to get broken into, and so chances are your insurance company won't have to pay to replace the stolen items. A nearby professional fire station in combination with a fire hydrant up front will result in faster response if there's a fire, which means less damage and less for the insurance company to repair or replace.

I think you catch my drift.

What's It Made Of?

When it comes to risk, it's not just what's on the outside that counts. The inner workings of your home are equally important.

• Certain building materials might cost less to insure or may qualify you for discounts.

For example, choosing brick construction over a wooden frame structure--or vice versa--can make a difference depending on whether you live in areas prone to earthquakes or hurricanes.

• Be sure to keep in mind all the inner workings of your home too.

Are your electrical, plumbing and heating systems in good shape? Outdated systems could become a hazard over time, and whatever you saved on that fixer-upper might go up in smoke when it comes to insuring it.

Already Settled? You Can Still Save!

Unless you're building or buying a new a house, there are some things that might be out of your control. But there are still things you can do to reduce your risk and save on home insurance rates. A lot of insurance companies offer many different special discounts for things you can do to reduce risk.

Safety Discount:

Did you install more alarms since you first bought your home? If your home has certain types of fire alarms, burglar alarms, locks, or smoke detectors, you've reduced your risk and may qualify for this credit.

Senior Discount:

If you and/or your spouse are now retired, you could receive a credit on your policy. That's because retired people are likely to be home more often and may be able to prevent trouble--like smelling an unusual odor from the furnace and shutting it off before it backfires soot into your home.

Multi-Policy Discount:

You can save money if you have more than one type of policy with the same insurance company (for example, an auto and homeowners policy).

Homeowners Association Discount:

Homes located in eligible homeowners associations may qualify for a credit. This is because homeowners in an association are likely to have a stronger sense of community and tend to watch out for one another. That means you've lowered your risk.

Nonsmoker’s Discount:

Studies show that homes inhabited by nonsmokers have a lower chance of having a fire. Your reduced risk may mean a reduced premium.

Get it Even Cheaper!

You’ve already got the tools to reduce risk and your insurance rates, but you’re a penny pincher. How low can you go? Here are more tips to get you really cheap home insurance...without skimping.

Deductibles

This is what you pay out of your own pocket before your insurance policy kicks in. Get the highest deductible you can afford. It'll take a chunk off your annual premium. The savings you'll get over time will offset any out-of-pocket expenses you pay in the event of a claim.

Don't Insure Land

Make sure that when you're figuring out the value of rebuilding your home in the event of a disaster you're not going by what you paid for it. That price included the land under your house, and that land's not going anywhere. Figure out what it would cost to replace the house, not the land it sits on. Your dwelling coverage (also known as Coverage A) should only include the value of your home structure, but oftentimes the value is miscalculated to include your land-–which is not covered by your policy.

Value of Valuables

Did you buy extra coverage for extra fancy things you had when you first bought the house and got insurance? If so, these items may not be so valuable anymore. Take a look and adjust your coverage accordingly. You don't want to waste money on insurance you no longer need!