It’s a rare situation that you can afford to be without home insurance. Most mortgage lenders require home insurance as part of the terms of a mortgage, and even if you own your home free and clear, insurance can be the easiest way to safeguard your investment. But home insurance isn’t exactly cheap — especially when you realize that the costs can vary by hundreds of dollars, depending on which insurance company you purchase your policy through. There are a few steps you can take to make sure your home insurance costs are low:

1. Shop around: This may sound like a particularly easy suggestion, but you’d be surprised how many people just sign up for the first home insurance policy they find. Try both online providers and companies in your area to find the best deal. Of course, you aren’t shopping just for the lowest price you can find — you need a policy that will cover your house well, and it’s okay to pay a litle more in order to go with the insurance company with great customer service.
2. Raise your deductible: If you want to drop the cost of your home insurance in a hurry, your best bet is to raise your deductible. Most policies have a deductible of at least $500, but if you can raise that to $1,000, you can save up to 25 percent. If you do choose to raise your deductible, it’s generally worth your while to set aside an amount equivalent to your deductible in a rainy day fund.
3. Don’t insure your land: It’s common to take the value of the land your house sits on into account when deciding how much coverage you need — but it isn’t necessary. A windstorm or a fire isn’t about to damage your land, so there’s no need to insure it.
4. Group your policies together: You can often get a discount on one of your insurance policies if you buy multiple policies from the same company. Take a look at your auto policy — can you buy from the same company for a lower rate? You may need to move one of your policies to qualify for such a discount.
5. Ask your agent for tips: Many insurance agents will offer you tips on how to decrease your costs with a particular company. For instance, many insurance companies will cut your costs if you make your home more disaster-resistant — especially if you have an older home that can use some retrofitting. Home security systems can also be a way to drop your rates.
6. Keep your credit clean: The number of insurance companies that take credit scores into account when deciding on your coverage and price are growing. In some cases, there can be a direct correlation between higher rates and lower credit scores. The cleaner your credit, the better.
7. Stay loyal: If you’ve been with one insurer for several years, you may be eligible for a loyalty discount. Such discounts are typically available after five or ten years — an insurer may reduce your premium by five to ten percent as a reward.

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Keep Your Home Insurance Costs Down: 7 Tips

By thursday

It’s a rare situation that you can afford to be without home insurance. Most mortgage lenders require home insurance as part of the terms of a mortgage, and even if you own your home free and clear, insurance can be the easiest way to safeguard your investment. But home insurance isn’t exactly cheap — especially when you realize that the costs can vary by hundreds of dollars, depending on which insurance company you purchase your policy through. There are a few steps you can take to make sure your home insurance costs are low:

1. Shop around: This may sound like a particularly easy suggestion, but you’d be surprised how many people just sign up for the first home insurance policy they find. Try both online providers and companies in your area to find the best deal. Of course, you aren’t shopping just for the lowest price you can find — you need a policy that will cover your house well, and it’s okay to pay a litle more in order to go with the insurance company with great customer service.
2. Raise your deductible: If you want to drop the cost of your home insurance in a hurry, your best bet is to raise your deductible. Most policies have a deductible of at least $500, but if you can raise that to $1,000, you can save up to 25 percent. If you do choose to raise your deductible, it’s generally worth your while to set aside an amount equivalent to your deductible in a rainy day fund.
3. Don’t insure your land: It’s common to take the value of the land your house sits on into account when deciding how much coverage you need — but it isn’t necessary. A windstorm or a fire isn’t about to damage your land, so there’s no need to insure it.
4. Group your policies together: You can often get a discount on one of your insurance policies if you buy multiple policies from the same company. Take a look at your auto policy — can you buy from the same company for a lower rate? You may need to move one of your policies to qualify for such a discount.
5. Ask your agent for tips: Many insurance agents will offer you tips on how to decrease your costs with a particular company. For instance, many insurance companies will cut your costs if you make your home more disaster-resistant — especially if you have an older home that can use some retrofitting. Home security systems can also be a way to drop your rates.
6. Keep your credit clean: The number of insurance companies that take credit scores into account when deciding on your coverage and price are growing. In some cases, there can be a direct correlation between higher rates and lower credit scores. The cleaner your credit, the better.
7. Stay loyal: If you’ve been with one insurer for several years, you may be eligible for a loyalty discount. Such discounts are typically available after five or ten years — an insurer may reduce your premium by five to ten percent as a reward.

a

Keep Your Home Insurance Costs Down: 7 Tips

By thursday