Contrary to what you might be made to believe, it's quite easy to position yourself for an affordable homeowner insurance rate.
The two things that keep you from attracting a more affordable rate at the moment are the right information and a motivation to make use of the tips you get.
Let us get into the steps you need to attract more affordable rates...
1.
It's more expensive and very unnecessary to insure the land on which your home is built.
People do this without knowing.
They just insure their home for its complete value without subtracting the cost of the land.
If you did such ignorantly, you'll have to review your home owner insurance coverage and go through it again with your agent.
Deduct the land's value and you'll discover that you will need far less coverage.
This means you'll spend a lot less on home insurance.
Bearing in mind that insurance is for things that can be lost or damaged, insuring the land which can neither get lost or damaged isn't a smart move.
2.
Your rate is partly determined by your credit history.
Folks who have excellent ratings pay far less than people who have low ratings.
A poor credit rating means that you've not been paying your bills promptly.
An insurance company interprets this to mean that you're financially irresponsible and will likely default in paying your rates.
This makes you a higher risk to them and yourself, therefore, are made to spend higher than some other person with similar profile that has a very good rating.
Therefore, it will do you much good to clear all your bills promptly.
It will help you get more affordable rates among other things.
3.
Electing to pay your rates on a monthly basis results in higher rates than you would pay if you choose to pay annually.
A strong reason for this is the cost an insurance company incurs for posting you twelve bills instead of just one each year.
If you add to the fact that each check you send is considered a transaction by their bankers, you will see that they still spend some more on transaction charges for each check you pay in.
Twelve checks mean Twelve transactions and will attract Twelve separate fees..
These and other charges so incurred by your insurer are ultimately passed over to you, the insured..
You will make reasonable savings if you begin to pay annually.
The actual amount you could save may differ but you may be able to save up to a month's premium worth with some insurers if you choose this option.
4.
You'll save much if you can shop around and do thorough comparison.
The range of quotes presented for a request could be as wide as $1,000 for a particular person.
While 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/value.
The cheapest price may not represent you the best price/value.
Although each of the quotes presented will definitely give you the same main coverage, there could be several differences in the details of coverage.
This makes it important that you find out if there aren't any exclusions you won't like.
Don't forget to treat these no-obligation quotes just that way.
Don't feel you have to pay unless you've got all your questions answered to your satisfaction.
You will prevent rude surprises later if you do this.