Home Insurance -- Seven Sure Tips

Contrary to what you might have thought, it is quite easy to position yourself for a cheaper rate. All you need to achieve this end are little bits of information (That is, if you use them). Following is a list of things that will help you get to this goal...

1. It's more expensive but needless to insure the land on which your home is built. Some folks spend much more than they should on home insurance due to this mistake. Insuring your home for the purchased price without deducting the land's worth is a big mistake.

If you made such a mistake, you'll have to re-evaluate your home insurance coverage and go through it again with your agent. Lower your coverage to the worth of your house and its contents minus the land's cost.

Your premium will be cheaper and you'll still have adequate coverage if you do this right. Bearing in mind that insurance is for valuables that can be lost or damaged, insuring the land which can neither be lost or damaged isn't a smart move.

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2. What you pay as premium is affected by your credit rating. The lower your credit rating, the higher the rates you get. If your credit rating is bad then you've NOT been faithful in paying up your bills. An insurance company interprets this to mean that you're not financially very responsible and will likely default in paying your premiums. This makes you less attractive to them and you, therefore, are made to spend much more than some other person with the same profile that has a very good rating.

Therefore, it is a wise decision to pay all your bills promptly. Apart from the other benefits in doing so, it will ensure you get lower home insurance premiums.

3. Electing to pay your rates on a monthly basis results in higher rates than you'd spend if you choose to pay yearly. A strong reason for this is the cost an insurer incurs by posting you twelve payment notices instead of just one each year.

The cost increases if you add the fact that they pay transaction fees for processing each check you send them monthly. 12 checks mean 12 transactions which mean 12 different transaction charges. These and other costs so incurred by your insurance company are eventually paid by you, the insured..

Therefore, you will attract lower premiums if you choose to pay your premiums yearly. What you'll save could be as high as 8.5% of your total monthly payments over the course of just one year.

4. Make sure that the exterior of your home is fire-safe and your premium will be more affordable. Do you have things that could likely help combustion near your house? They'll make you pay more. Bushes near your home should be cut and maintained at a distance of at least 10 feet from your building. Fire-safety is a strong point that is used to calculate what you pay in premiums.

5. Motion-sensitive lighting reduces your home's risk of burglary and, therefore, makes it easier for you to get lower home insurance premiums. Your house becomes less attractive to thieves since they'll be noticed easily. The risk of burglary is a strong factor in calculating a home's risk to an insurer and, consequently, your premium.

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6. Having dead-bolt locks on every exterior door will bring down your home insurance rate. It's more difficult for thieves to operate in homes that have these locks. The more protected your home is against burglary, the lower the risk involved in insuring it.

7. Do you have locks on each of your windows? If you don't you will be spending more because of that. You can take this to another level by building in burglary-proof bars on all your windows. Even though most folks do not like this because it makes them feel like a prisoner in their own home, it really does reduce your premium considerably. If you are not one of those people who claim that having such makes them feel imprisoned in their own home, have them fitted if you want to lower your home insurance rates considerably.
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