Lower Your Monthly Home Insurance Cost With These 5 Factors
It’s no secret that most Americans overpay on their monthly home insurance. If they knew how to shop smarter they could easily save a lot of money on their insurance. In this article I’m going to show you 3 steps that will help you make the most of every dollar you pay on your insurance. Hopefully, by the time you’ve finished reading this article you’ll have some great ideas about how you can start getting more out of your home insurance monthly payments.
First, use comparison tools to get real quotes for your home insurance coverage. The national average price of homeowners insurance is about $1,598 or maybe even less per year. But average monthly premiums range dramatically from one carrier to another and also from one state to another, depending on factors such as the neighborhood you live in, your credit rating and personal factors such as your social security number… all of which are important in determining who can offer you the lowest prices. Using a combination of real quotes and free online resources will allow you to quickly find the lowest priced policy. Also, if you have existing homeowner’s insurance policies with the same insurance company, be sure to inquire about the renewal discounts available to you.
Next, use online resources to compare your level of coverage versus your monthly budget. There are many resources available on the web that will allow you to enter your age, gender, and your home insurance needs (including which items you want coverage for, such as fire alarms and security systems). Within just a few minutes you’ll get several competing insurance quotes from different insurance companies. You can either choose to accept the quote or look at it again in a few minutes. Remember, however, that you’ll probably be asked to provide a larger down payment to make your quote more competitive.
The third factor is to determine whether to select higher deductible or lower deductible. Higher deductibles will result in lower monthly premiums but they come with a greater deductible. Lower premiums can help you pay off your debt quicker, but if your debt is large, you’re not insuring yourself against a large sum of money, so you’re better off selecting a higher deductible. Remember to keep this factor in mind when comparing insurance premiums.
The fourth factor that can significantly affect your monthly home insurance premium is whether or not you’re able to afford the amount of insurance coverage you need. You must pay a deductible before the insurance company pays anything else, which means there’s an interest rate involved as well. If you’re unable to pay your deductible, you’ll have to pay out of pocket and that’s the time the insurance carrier will begin to charge you a large amount of money. Therefore, you must do your homework to determine how much you’ll be able to afford. Many people don’t realize that there is a cap on the amount of cash they can borrow against their deductible, and it is based on your current credit rating and current loan terms.
The fifth and final factor to consider when determining your monthly home insurance costs is your credit score. Having a low credit score can negatively impact your insurance premiums. If you want to find the best rates, consider a credit score check run by an online service. Most websites that provide free credit score estimates will also allow you to enter your social security number. Entering your SSN may reveal some health problems, but it will also uncover things about your financial history that you may not have known without the check.
If you’re able to follow these five simple steps and use the same logic that the previous five steps apply to your situation, you should be able to lower your home insurance cost. This doesn’t mean that you should do this once and then never look at your premiums again. Instead, keep your eye on the national average cost and adjust your costs monthly. In most cases, you will be able to save several hundred dollars. Even if you’re paying hundreds of dollars more, it’s likely that you will be able to pay it off in a year or two and save the majority of your expenses.
Don’t forget to factor in replacement value when you are looking for an affordable insurance quote. The replacement value is simply the amount that the insurance company will pay for the total amount of your damaged belongings in case they are lost during a natural disaster or theft. This is one of the factors that can vary greatly between companies and can end up costing you a lot of extra money. To save on your replacement value coverage, take the time to check out several different quotes from different companies. Requesting multiple insurance quotes will allow you to compare them and choose the one that provides you with the best price. Remember to check your local building code requirements to ensure that you are getting a good policy that will cover all of your property.