How to Get Cheaper Home Insurance Rates
Finding cheaper home insurance is easy when one knows what questions to ask and what credits are available.
The most valuable asset most people own is their home. Therefore it is important to make sure that the home is properly insured. Carrying comprehensive home insurance coverage can be expensive, though. Whether purchasing a home owner’s insurance online or buying from a brick and mortar insurance agency, it is always wise to know what discounts are available and what you can do to get cheaper home insurance.
Steps That Can Be Taken to Lower Your Home Insurance Costs
- Maintain good credit. Many home insurance companies are now incorporating insurance scoring into their rating tier. Insurance scores are not only based on credit reports but also include variables such as driver age, claim history, and driving record.
- Increase the deductible. The easiest and quickest way to lower your home insurance premium is to raise the deductible. The deductible is the amount the insured must pay out of pocket in the event of a covered loss before the insurance company will pay anything. The higher the deductible, the lower the premium.
- Avoid costly installment fees. Pay annually or enroll in electronic fund transfer to avoid spending an additional $16-$84 in installment fees alone.
- Shop around. Go online, search through the yellow pages, or ask a friend for a referral. Next, contact multiple agencies and request a home owner’s quote (ensuring each agency is provided with the same information.) Finally, request each quote be emailed or sent to USPS to ensure all quotes can be compared side by side.
Discounts That Many Home Insurance Companies Now Offer.
- Multi-policy discount. Most home insurance companies offer a multi-policy discount if they write more than one line of business for an insured. Therefore, packaging your home, auto, umbrella, and life policies may result in significant savings.
- New home discount. A new home discount might be available if the home was built in the past ten years. Some companies also offer a discount if the home is newly acquired.
- Home security discount. A home insurance policy may be eligible for a security discount if a local or monitored alarm system has been installed. Ask an agent for details.
- Smoke-free discount. Some companies now offer a smoke-free discount if no one in the home smokes cigarettes, cigars, pipe tobacco, or similar products.
- Alumni or association discount. Many home insurance companies have a list of university alumni or association members who may qualify for a discounted rate. Don’t be afraid to ask if something like that is available.
Remember these tips next time you are shopping for cheaper home insurance to ensure you receive the best rate available.