There has never been a better time than now to know how to find the cheapest homeowners insurance. Homeowners coverage can be a big expense and the more you reduce this expense the more you will have to spend on other necessities. Whether you are buying a new home or simply looking for a way to find cheap homeowners insurance, a few tips on how to save can come in handy.
Here are 6 tips for finding the cheapest coverage
1. Consider the Value of the Home and Not the Value of the Entire Property
When determining the monetary limits of your coverage, do not use the amount you paid for the property or a recent appraisal of the property. If a disaster occurs and you have to rebuild your home, you will not have to rebuild the actual land under the home, which is included in the price you paid and on your appraisal. Set your limits at the amount it would cost to rebuild the home, and you will save money on your homeowners policy.
2. Check the CLUE on Any Home You are Considering Purchasing.
CLUE is the Comprehensive Loss Underwriting Exchange and the place where you can find a report on any home you are considering purchasing. This report includes all the insurance claims that have been made concerning the property. This will allow you to gauge possible problems with the home: the fewer problems, the cheaper the policy.
3. Raise Your Deductible
The goal with your deductible is to balance the premiums you have to pay with the amount that you would have to pay out-of-pocket if something should happen. With a home, you will generally not have as many claims as you do with health or car insurance, so the deductible can be higher.
Think about how much you could possibly afford to pay out of your pocket and then set that as your deductible. Most deductibles range from $250 up to around $5,000. A homeowners insurance policy with a $5,000 deductible will be anywhere from 30 to 40 percent cheaper than one with a $250 deductible.
4. Examine Your Assets
The liability limits on your policy can be changed and if you don’t have a lot of assets that can be taken in a lawsuit against you, you can save money on this portion on your policy by lowering your limits from $300,000 to $100,000.
5. Stop Smoking
Many people do not understand the connection between smoking and homeowners insurance but many companies will offer discounts on insurance rates if no one in the household smokes. This is because of the high number (over 20,000 per year) of home fires that are caused by cigarettes.
6. Shop Around
In order to find the cheapest insurance, you will have to shop around. With so many options available to you, there is surely a provider that can offer you the coverage you need while still offering you the cheapest homeowners insurance. Get as many quotes as possible and compare like policies so you can truly know which is the cheapest plan.
Get Your Rate Quotes Right Now
Shopping around is easier than ever before with so many insurance companies offering online quotes. You can get an online quote with only a few minutes of your time and could save a bundle by being able to pick the provider offering the policy you need at the price you can afford.
Use our homeowners insurance free quote tool to begin searching for the best homeowners insurance rates and policies. The speed and convenience will allow you to save money as well as time and hassle.