Homeowner's insurance can be expensive, but it is also the one type of insurance you don't want to skimp on. When you think about everything that homeowner's insurance covers, it can be quite a good deal in terms of money. Still, there are some common sense ways to lower your homeowner's insurance, and this article will look at some of the more common ones.
First of all, your lender can't legally make you use a certain insurance company for your homeowner's insurance. If your lender is treating you this way, you should find out why. You can choose any insurance company you want, as long as it is a real company and offers the coverage you need to meet the lender's requirements.
Shopping around can help you find a better deal on homeowner's insurance. Most people don't want to spend their weekends looking for insurance and reading and comparing different policies. It can be hard work, no doubt. But it can also be a lot of fun to do.
Many people are happy to find out that the market for homeowner's insurance is just as competitive as the market for new cars. Insurance companies want your business, so they are more than happy to offer deals to get you to switch to them. You can save a lot of money over time with some of these deals.
Your deductible can be raised, which is a second way to lower your premiums. You should know that the amount you pay in premiums is directly tied to how much risk the insurance company is taking on. In other words, they charge more money for premiums the more risk they take. When you raise your deductible, you take some of the risk off the lender's shoulders. But don't raise your deductible so high that you won't be able to pay it if you need to.
Putting in a security system is a great way to lower your insurance rates and get something of real value at the same time. This goes back to taking some of the risk away from the lender. A security system helps protect your home and your valuables. When you show this much personal responsibility, insurance companies are often happy to lower your rates.
The same is true for smoke alarms. Make sure you have the right amount of smoke alarms and that they are in the right places. Tell your insurance company when you get these things put in. They might have a sale.
Many people don't know that their credit score can affect how much they pay for their insurance. Your credit score is often used to change (go up or down) the amount you pay for home and car insurance. Find out what your score is and do what you can to make it better. You might be surprised at how much this can help lower the cost of your homeowner's insurance and car insurance.
