Low cost homeowners insurance can be had by those who take the time understand how to save money on one of life’s necessary expenses. As with any other type of insurance, homeowners insurance is about risk. How much will it cost the insurance company to insure you. This means there are many ways in which to reduce your risk and save money on your homeowners policy. Take a few minutes to read over the ways in which you can find cheap homeowners insurance.
Keep a Good Credit Record
A good credit record or credit score can do much more for you than just approving you for loans and getting better interest rates. A good credit record can lead to much better rates on your insurance as well. In fact, with nearly any line of insurance that you are shopping for, your credit history will be considered when determining rates.
Consider Your Homeowners Insurance When You are Buying a Home
If you are in the process of purchasing a home, you can think about the things that will lead to low cost coverage. As you search for a home, here are a few items to consider that will help save you money on your homeowners insurance policy.
- Brick home in wind resistant areas
- Closeness of fire hydrants
- Flood zone
- Newer plumbing
- Newer electrical wiring
- Professional vs. volunteer firefighters
- Wood frame home in earthquake zones
The flood zone that you are in could be the most important in terms of saving money on insurance. Flood zones are categorized by how often the surrounding land gets flooded in terms of years. If you live in flood zone that floods less than once every hundred years, then you can save money by not adding a flood policy to your policy.
Evaluate Your Low Cost Homeowners Insurance Policy Every Year
A yearly review of your existing policy is a must if you are looking for low cost insurance. The value of your property and possessions change over time, which means it is important to check the value of your possessions and go over the limits of your policy once a year.
If you have sold valuable possessions in the last year, then you can lower the limits of your personal property insurance. Also, a severe downturn in the housing market can mean your rebuilding costs would be lower and you could lower those limits and save a little extra cash. If your home gains value over the next year, you can always raise those limits to get the coverage you need.
Consider Private Homeowners Insurance in High Risk Markets
If you live in an area that is particularly susceptible to strong storms such as hurricanes, you may feel as if you are forced to purchase a government insurance plan. This may be the case; however, you should look into trying to find a private insurance company that would appreciate covering this portion of your policy and you may save some money in the process.
Low Cost Homeowners Insurance with Improved Home Security
The more secure your home, the less likely it is to be vandalized, robbed, or damaged because of high winds and storms. By reducing your risk, your insurance company will be able to provide you with cheaper premiums.
There are many things you can do to help make your home safer and less risky in the eyes of insurance companies.
- Install Home alarm system
- Install storm shutters
- Modernize electrical, heating and plumbing systems
- Reinforce roof
- Retrofit home to better withstand earthquakes
Any or all of these can lead to more discounts and the money you spend on them will pay for themselves while also giving you more peace of mind.
Take Advantage of the Internet for Low Cost Homeowners Insurance
The availability of information and rate quotes online has made it easier than ever before to save money on insurance. Shopping around is the sign of smart consumer and getting online rate quotes from multiple companies can make the process quick and easy.
Take the time to get as many rate quotes as possible to exhaust all of your options and you will find the best policy at the best rate. You can use the insurance finder at the top of the page to begin your search. It is free and can lead you down the road toward low cost homeowners insurance.