Homeowner Insurance -- Seven Proven Tips

It's really very easy for everyone to get the right coverage at a low price. You just need the right recommendations and the determination to implement what you'll be taught to start enjoying a better rate. Let us get into the steps you need to attract more affordable rates...

1. It is more expensive but needless to insure the land on which your home is built. People do this ignorantly. You've made the same mistake if you insured your home for the price you purchased it without finding out the cost of the land it's standing on and deducting it.

For those who have mistakenly done this, call your agent and check your home insurance coverage again. Lower your coverage to the worth of your home and its contents minus the land's value.

With such a review you will reduce your rates by a huge margin and still have enough home insurance coverage. Don't ever forget that insuring the land your home is standing on is plain waste of money because it does you no good whatsoever.

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2. Your credit history has a huge impact on what you pay. Those who have excellent ratings pay far less than folks who have poor ratings. A bad credit rating implies that you have not been paying your bills promptly. An insurer interprets this to mean that you're not financially very responsible and will possibly default in paying your premiums. If you are seen as a likely defaulter, it makes you a higher risk and draws much higher premiums than otherwise.

It will, therefore, be a smart step to do something about improving your credit rating. You will attract cheaper premiums if you do.

3. You will get more affordable rates if you choose to pay your rates yearly and not every month. Your insurer sends 12 notices for monthly payments as opposed to one for annual payments. This increases their overhead.

The cost shoots up if you add the fact that they pay transaction fees for processing each check you give them monthly as payment. They pay transaction fees 12 times instead of once annually for monthly payments. And, if you really come to think of it, these extra overheads are ultimately built into your rates.

Therefore choose yearly payments instead if you want to save through this means. The actual amount you could save may differ but expect to save up to a month's premium worth with most insurers if you settle for this option.

4. Ensure that the exterior of your home is fire-safe and your rate will be cheaper. Having things that are quite inflammable or that help combustion close to your building will make you pay higher rates. Bushes around your home should be cut and maintained at not less than ten feet from your structure. Fire-safety is a major factor that determines what you pay in premiums.

5. Motion-sensitive lighting lowers your home's risk of burglary and, therefore, makes it easier for you to get lower home insurance rates. Your home becomes less attractive to thieves since they'll be spotted easily. The risk of burglary is a strong factor in determining a home's risk to an insurer and, consequently, your premium.

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6. Do ensure that every door to the exterior has dead-bolt locks. This makes it difficult for intruders or burglars to break in. And since a home's risk of burglary is a major factor in calculating your home insurance premiums, you'll pay far less.

7. Fitting window locks on all your windows will help reduce your home's risk of burglary. You'll save even much more if you go one step more to get burglary-proof bars fixed on all of them. If you're not one of those people who have a deep hatred for such, they'll get you considerable discounts. Therefore, if you are not bothered by having burglary-proof bars in your home, have them built in and you will be charged much less in your home insurance rate.
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