Posts Tagged ‘Homeowner’s Insurance premium’

You can Lower your Homeowners Insurance Rates!

Tuesday, June 8th, 2010

You don’t need to give up good coverage to lower your homeowner’s insurance rates. You do, however, need to do your homework to ensure that you’re getting the best policy at the best rate.

First of all, it is important to understand that your homeowner’s insurance premium is typically dictated by where you live. In other words, don’t be surprised to find a huge difference in insurance premiums if you move from one state to the other.  Just like real estate, homeowner’s insurance prices vary widely, so don’t expect to pay the same rates in Florida as you did in Pennsylvania.

With that said, here are some inventive ways to lower your homeowner’s insurance premium - without lowering your coverage:

  • Raise your deductible - One of the easiest ways to see a significant drop in your homeowner’s insurance rate is to raise your deductible. Many homeowners, for example, can expect to see a decrease of about 25 percent, merely from raising their deductible from $500 to $1,000, according to the Insurance Information Institute. A larger deductible usually makes sense for most homeowners, as they will usually not file a claim unless there is significant damage. It is important, however, to make sure that you have $1,000 set aside in case you need to file a claim.

  • Bundle your policies through one company - Simply by buying two or more policies from the same company can reduce your rates anywhere from five to 15 percent, according to the Insurance Information Institute. Called an umbrella policy, you can choose to purchase your life, auto and homeowners insurance through the same company and save big.

  • Improve your home’s safety - Home improvements may go a long way when considering your homeowners insurance policy rates. Replacing your roof, updating your electrical service or adding a safety feature, such as an alarm or sprinkler system, may allow you to receive a lower-cost policy. At the same time, you may want to consider getting rid of the swimming pool or trampoline in the backyard; both of which may raise your insurance rates significantly.

  • Keep an eye on your rates and check them annually to ensure that you are receiving the most competitive rates.

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Homeowner’s Insurance: How to Save Yourself Some Cash

Friday, April 23rd, 2010

If you’re a homeowner, you want to protect your home and all that is in it. However, you certainly do not want to go broke in the process. If it seems like your homeowner’s insurance rates are eating up more of your income than you would like, there are a few things you can do to bring that rate back down to a level that has you breathing a sigh of relief.

Most importantly, shopping around could be the best way to find a rate you can live with. Compare prices and go with the best plan that does not demand a couple of your beloved limbs in the process. However, if this doesn’t cut it for you, look into the following options:

Your Credit Score

How is your credit score looking these days? If you have run into a few speed bumps here and there and it has adversely affected your credit, this could be the reason for your higher insurance rate. As long as you are ready to take on the expense of homeowner’s insurance and keep your premiums paid, you might want to look into a insurance company who does not check your credit. This could save you a bundle right up front.

Keep Your Policy Updated

If you have sold some valuable possessions, you obviously won’t be needing the same amount of coverage. Check your policy often and ensure that things you no longer own are taken off and be sure to add on new purchases.

Association Benefits

Are you a member of some alumni or business association? Whatever group you belong to, find out if there are group insurance rates or discounts that you could take advantage of to save some money in the long run.

Non-Smoking Home?

If no one in your home smokes, and you adamantly do not allowing smoking inside your home, mention this to the insurance company. Considering the fact that smoking accounts for 23,000 residential fires per year, your lower risk home could bring you a discount in premiums.

There are many, many more ways to save yourself a ton of money on your homeowners insurance. Don’t be afraid to look into your options and take advantage of each and every discount you are eligible for.

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