Homeowners' Insurance -- Four Simple Tips For Lower Rates

Contrary to what you might have thought, it is quite easy to attract a cheaper home insurance rate. The two things that stand between you and attracting a cheaper rate now are relevant information and a motivation to use the recommendations you get. Let us now look at several sure-fire ways to get better rates...

1. Make sure you do NOT make the mistake of not subtracting the land's value from the home's value while applying for an homeowners' insurance policy. A good number of folks pay much more than they should on homeowners insurance due to this mistake. You have made same mistake if you insured your house for the price you bought it without checking the cost of the land it's standing on and deducting it.

If you made this mistake quickly meet with your agent and review your coverage. Deduct the cost of your land and buy coverage only for your home and its contents.

This implies that you'll pay far less on home insurance. Do not ever forget that insuring the land your house is standing on is real waste of money because it does give you any added advantage.

2. You will pay more or less depending on your credit history. The poorer your credit rating, the higher the premiums you will pay. What your credit rating reveals is how you have handled your bills and it speaks badly about you if it is a poor one. An insurance company interprets this to mean that you are financially irresponsible and will possibly default in paying your rates. If you're seen as a likely defaulter, it makes you a bigger risk and draws more expensive premiums than otherwise.

So do all within your power to clear all your bills in a timely manner. It will help you attract cheaper rates among other things.

3. Choosing to pay your rates monthly leads to higher premiums than you would pay if you decide to pay yearly. This is because sending you 12 bills by mail each month costs your insurance company much.

As if that was NOT enough expense, each check you send attracts a transaction fees too. They pay transaction charges twelve times instead of once yearly for monthly premiums. And, if you really come to think of it, these extra overheads are eventually built into your rates.

As a result, you'll attract lower rates if you opt to pay your rates anually. What you'll save could be as much as 8.5% of your total monthly premiumss over the course of just one year.

4. You will save much if you do shop around and do detailed comparison. The range of quotes presented for a request could be as wide as $1,000 for a particular profile. Although this is a good thing, it's advisable that you don't get carried away. It's not normally that easy if you want the best price to value ratio. The lowest quote may not offer you the best price/value. Notwithstanding that each of the quotes presented will certainly give you the same main coverage, there could be a lot of differences in the details of each insurer's coverage. This makes it important that you find out if there aren't any exclusions that won't serve your best interest. Don't forget to treat these no-obligation quotes as their name implies. Don't feel obliged to pay unless you've had all your questions answered satisfactorily. You will prevent rude shocks down the road if you do this.

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