Keeping informed about trends in the insurance industry may help Americans budget for their next property purchase.

Consumer Reports Money Adviser recently pointed to various factors that are responsible for shaping homeowners insurance premiums. The first of these is location. Residents of coastal states are increasingly facing higher premiums than their landlocked counterparts, according to the report, meaning that switching to a new policy may be the best choice for some.

Cost-cutting consumers may be able to save money by increasing their deductibles. However, as percentage deductibles become more common, it may become difficult to secure actual savings.

“If you must take a percentage deductible, set aside savings toward it in your emergency fund,” the report said. “Switching to a higher flat-dollar deductible can reduce your total costs over time.”

Consumers should also make sure they’re insuring the right amount: Deflated home prices are often much less than a property’s replacement cost, according to the report. The latter of these should be reflected in one’s insurance coverage.

Keeping up on their credit may also help consumers obtain the most affordable homeowners insurance premiums. A high credit score may be indicative of low financial risk and a reduced likelihood of filing claims.

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