You are entirely free to NOT insure your house unless it is being financed and you still have a mortgage on it. But in spite of this you’ll agree with me that people still opt to maintain a home insurance policy even after they’ve paid off their mortgage. For most of us, our home represents our single most important investment and/or property. Therefore, we certainly don’t mind the extra cost that buying protection against its loss entails.
But we all will be glad to pay much less if the quality of coverage we get won’t be compromised. That is what this piece is all about — To show you time-tested ways you can lower your home insurance rates but still make sure you have the most adequate coverage for your home.
1. Do not insure your home along with the land it is standing on as this will cost you more but quite unnecessary. A good number of people spend much more than they should on home insurance on account of this mistake. You’ve made the same mistake if you insured your home for the price you bought it without finding out the cost of the land it is standing on and subtracting it.
If you did such ignorantly, you need to re-evaluate your home insurance coverage and go through it again with your agent. Lower your coverage to the worth of your house and its contents minus the land’s cost.
With such a review you will lower your premiums considerably and still have sufficient home insurance coverage. Since insurance is for things that you can’t afford to lose, insuring the land which can neither get lost or damaged isn’t right.
2. What you pay as premium is affected by your credit rating. People who have excellent ratings spend far less than folks who have low ratings. What your credit rating reveals is how you treat your bills and it speaks badly about you if it’s a poor one. No insurer likes this as it shows a behavior you’re quite likely to repeat in the payment of premiums. If you’re considered a likely defaulter, it makes you a bigger risk and attracts more expensive premiums than otherwise.
So do your best possible to clear all your bills in a timely manner. Apart from the other benefits in doing so, it will ensure you get cheaper home insurance rates.
3. You will get more affordable rates if you choose to pay your rates annually and not monthly. Your insurer is compelled to send you 12 notices for monthly payments instead of one for yearly payments. This increases their overhead.
If you include the fact that each check you cut is seen as a transaction by their bankers, you will see that they still spend extra on transaction charges for each check you pay in. Twelve checks mean 12 transactions and will attract Twelve separate fees.. These and other costs so incurred by your insurer are ultimately passed over to you, the policy holder..
Therefore, you will attract lower rates if you choose to pay your rates annually. What you’ll save could be as much as 8.5% of your total monthly payments over the course of just a year.
4. Ensure that the exterior of your home is fire-safe and your premium will be more affordable. Having things that are quite inflammable or that aid combustion close to your building will make you pay more expensive rates. As simple as it seems, cutting back bushes and keeping them up to 10 feet from your structures will help lower your premium. This is because how fire-safe a house is goes a long way in determining what it will cost to insure it.
Related posts:
- Home Insurance — 4 Tested Ways to Get Discounts
- Cheapest Home Insurance Rates — 6 Proven Tips for Greater Discounts
- Cheaper Home Owner Insurance — Six Guaranteed Steps to Bigger Discounts
- Car Insurance — Steps to Bigger Discounts
- Cheaper Homeowners Insurance Rates — Tips to Help You Attract Discounts
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