If a bank or other financial institution is helping you pay for your home, you will need homeowner's insurance. But you don't have to have the homeowner's insurance that your bank or other financial institution probably told you you had to have. You have a choice and can switch your insurance policy to almost any company you want, which could save you a lot of money.
But no matter which insurance company you have, there are a few things you can do that should lower your insurance premiums, sometimes by several hundred dollars each year.
First, make sure your policy covers the full cost of replacing your home, but don't make the mistake of insuring for the value of the land where your home is built. Fire or other disasters won't hurt the land, but they will hurt your house and things on it.
The lower your monthly premiums will be, the higher your deductible can be. This means that you may have to pay for most small repairs to your home on your own, but if you have a big loss, you won't lose all of your money trying to fix it.
Make sure every door and window has a working deadbolt and lock. Make sure that you have enough smoke and fire detectors and that they all work. Keep your home clear of weeds, brush, and trash. When you do each of these things, your home is less likely to catch fire, and you can often save 5 percent or more on your homeowner's insurance.
Clean up your credit report. Most homeowner's insurance companies base part of your monthly premium on how good your credit is. This is something that many people don't know.
If you are 55 or older, check with your insurance company to see if they offer a discount for seniors. Many do. If you've had your homeowner's policy with the same company for at least three years, check to see if the company offers a discount for long-time policyholders. Sometimes these discounts can save you 5 percent or more on your monthly premiums.
Then, go online and look at three or more websites that let you compare homeowner's insurance policies and prices. Remember that you really need to compare prices at more than one website if you want to save the most money and get cheap homeowner's insurance in Missouri.
Making the comparisons can take a lot of time and patience, but when you're done, you'll have saved a lot of money.
