Tips for Lower Homeowners Insurance Rates

You simply cannot underestimate the importance of a homeowner’s insurance policy yet the exorbitant rates prove nightmarish for most people. However, there is no escaping this expenditure because most lending institutions will require a homeowner’s insurance policy before granting mortgage on a property. So here are a few tips for lower homeowner’s insurance rates.

Unfortunately, sometimes the rates of home insurance in your area may increase in the face of mounting instances of robbery, crime or due to a national disaster and you may have to find alternate means to offset this increase.

One way of reducing your homeowner’s insurance rates is to consolidate your home insurance policy with the other policies that you may hold. Usually most insurance companies will give you a discount if you insure your home and your car through them.

The premium rate will usually be lower for safer homes. For instance, most insurance companies will give you a discount if you install a home security system, a new roof, dead bolts or other such safety features in your home.

You may also want to consider reducing the deductible. Usually deductibles are offered in the range of $250 to $30,000. Make it a point to discuss various deductible options and the corresponding premium rates with your insurance agent. Usually raising your deductible a few hundred dollars will equate to substantial savings on your premium. For example even though the recommended deductible stands at $500 if you can raise it to $100 your premium will be lowered by almost 25%.

If you are in the market for a new homeowner’s insurance policy, make sure that you have a good credit history because most companies would be willing to offer home insurance policies at lower rates to consumers with no history of claims and a good credit rating.

There is no reason why you need to continue with the same insurance company year after year. Make it a point to compare the premium rates offered by various companies each time your policy is up for renewal. Also try to find out if your current insurer offers discounts to loyal customers. For instance many insurers will offer a 5% discount on policies that are between 3 to 5 years old.

You may not want to include items such as expensive jewelry high end electronics and valuable art work in your homeowners insurance policy because their full value will never be covered by a standard home insurance policy yet including them will drastically increase your premium rates.

Since your premium will be based on the value of your property including the cost of the land will simply augment your premiums but in reality the land is at no risk from natural disasters or theft so you don’t have to include in the value of your property