Thursday, November 5, 2009

Cheapest Homeowners Insurance -- Tips To Help You Pay Less


There are tips you must take note of and implement if you're really keen on getting big discounts on your homeowners insurance policy. I'll discuss some of them in this article...

1. A group home insurance policy will cost you less. Some associations have also negotiated discounts for their members with home insurance carriers so ask if yours has such.

Though, before you apply this option, compare the premiums you will get from such an association with what you'll pay with another insurance company. For a good number of reasons you could be better off NOT buying from a particular group's insurer. Therefore, it actually does pay to shop if you are after the best premiums.

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2. You can get more affordable rates if you're retired. Ask your agent if your insurer offers such a discount.

The rationale behind this discount is that those who are almost always at home are less likely to be burglarized. Furthermore, Fires can be easily noticed and put off if somebody is always at home.

3. You should get a good discount if you have stayed with an insurer for three years and above. Most insurers will give discounts once you keep your policy with them for 3 years and above. Nevertheless, don't remain with an insurance carrier only for this reason. Make sure you have a good price to value.

If it is about spending less, you will likely still be able to pay cheaper than you are paying at any point in time. Do extensive shopping and you'll be pleasantly surprised. I recommend that you obtain quotes from companies you've never received quotes from time to time.

4. Do not insure your house along with the land it is built on as this is more expensive but is needless. People do this without knowing. You have made same mistake if you insured your house for the cost you bought it without checking the cost of the land it's standing on and subtracting it.

If you made such a mistake, you need to review your homeowners' insurance coverage and check it again with your agent. Deduct the land's price and you'll discover that you will need far less coverage.

Your premium will be less and you'll still have sufficient coverage if you do this right. No matter what you do and who you meet, don't forget that the only things you insure are things that can be lost or damaged and your land is not one of such.

5. Making your premium payments once every year will save you a lot when compared to monthly payments. An insurance carrier is compelled to send you 12 notices for monthly payments as opposed to one for yearly payments. This increases their overhead.

The cost shoots up if you include the fact that they pay transaction charges for processing each check you send them monthly. They pay transaction fees twelve times instead of once anually for monthly payments. These and other charges so incurred by your insurance company are eventually paid by you, the policy holder..

You will get considerable savings if you choose to pay yearly. What you will save could be as high as 8.5% of your total monthly payments over the course of just a year.

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6. What you pay as premium is affected by your credit rating. You'll attract higher home owner insurance rates if you have a low credit rating. A poor credit rating suggests that you've not been paying your bills promptly. An insurer interprets this to mean that you're financially irresponsible and will possibly default in paying your premiums. This makes you a bigger risk and so attracts a higher rate.

Therefore, it is a wise decision to pay all your bills once they are due. Apart from the other benefits in doing so, it'll ensure you get lower homeowner insurance premiums.

7. The most important step to massive savings in home insurance is comparison shopping -- Provided that you do it well. You can get quotes that will have a difference in excess of $1,000. You could easily save that much by simply going with the lowest quote. This should be the case if you're simply after the lowest price. Howbeit, if you're after the best value to price ratio then you would have to check the details of the lowest quotes. Different insurers may have adjustments for similar policies. It's wise to ask the agent what's part of the deal and what's not.
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