While shopping for homeowners insurance, you have probably come across the variables used to determine the cost and noticed that your credit score is one of those variables. The question on your mind now is—can I still find cheap homeowners coverage with bad credit?
Can I Still Find Cheap Insurance With Bad Credit?
The simple answer to this question is yes. It is possible to find cheap homeowners insurance with bad credit. Your credit score is only one variable used to determine the cost of your policy. While a bad credit score will cost you, and it may force you to purchase PMI insurance, if you take care of the other variables in the equation, you can save on your premiums.
Secure Your Home
Making your home and personal belongings more secure is a great way to save money on because it reduces risk. Insurance is all about risk, any step you take to lower the risk you pose to the insurance company can result in savings. Here are a few tips to help secure your home and save some money.
- Increase number of smoke alarms
- Install deadbolt locks
- Install security alarm
- Purchase fire extinguisher
- Purchase monitored security system
If you are currently in the market to buy a home, then consider the neighborhood of any prospective home. Safe neighborhoods mean savings.
Shop for Discounts
To overcome bad credit, you must put a bit more effort into shopping for coverage. Scout as many insurance companies as possible to find the company that offers the most discounts you can qualify for. Discounts are offered by virtually all insurance companies and they can significantly reduce your premiums. Some of the most common discounts include:
- Age (Those over 50 can receive reduced rates)
- Bundle policies (purchase homeowners insurance and auto insurance together)
- Paperless (get statements and make payments online)
- Loyalty (stay with the insurance provider for 2, 3, 4 years or more)
- Non-smokers (smokers pay significantly higher rates)
Consider Policy Elements
If you still are having trouble finding cheap insurance after shopping for discounts and securing your home, you should examine your policy. The amount and extent of your coverage will play a large role in determining your premiums. The items to pay particular attention to are the deductible, monetary coverage for property and contents, and liability coverage. A reduction in any of these elements will lower your premiums. You may find that your monetary coverage limit includes the price of the land as well. Since you do not need to insure the land, this can be reduced to only how much it would cost to rebuild the home.
In order to know which company can offer you the cheapest rates, you have to look. Comparison shopping is easy to do and can save you a significant amount of money. Rates are not regulated, so one company may be hundreds of dollars more expensive than other competitors. To save money and quickly compare rates, take advantage of online quotes. In only 15 to 20 minutes, you can have multiple quotes at your disposal to compare. This is a great way to find cheap homeowners insurance with bad credit.