Home Insurance Rate
Lower Your Home Insurance Rate
Every homeowner needs to have a good insurance policy. It would be foolish to allow such a large investment to be unprotected and if you borrowed money to purchase your home your lender would no doubt require that you have adequate coverage before making a loan. You know how important having good coverage is but many people pay too much for their coverage and it is possible to lower your home insurance rate by avoiding the common mistakes that many people make.
A very common mistake that a lot of people make is to over insure their home insurance rate. If you pay $250,000 for your house you do not need to have $250,000 worth of homeowners insurance. You need to have enough coverage to repair or rebuild your home if it was damaged or destroyed. A large portion of the purchase price of a house goes to the land that the house sits on. If your home was destroyed you would need enough coverage to rebuild the home but the dirt that your home sits on would not need to be replaced.
Another common mistake that inflates peoples home insurance rate is having deductibles that are too low. Raising your deductible from $250 to $500 could reduce your premium payments by as much as 25%
A big mistake that a huge percentage of people make is not reviewing their policy at least once per year. As home prices rise and fall the amount of coverage you need will change. If you make improvements to your house that increase its value you may want to actually increase the amount of coverage you have. In the current economy home values are falling and you may be carrying too much insurance.
One of the biggest mistakes that a lot of homebuyers make is to simply go with whichever insurance company their real estate agent recommends or whichever one has a nice looking ad in the phone book. Shopping for homeowners insurance is no different. You can go online, enter some information about your home and answer some questions, and in just a few minutes you will have multiple quotes from a number of different insurance companies allowing you to quickly and easily find a company that offers the coverage you need for your home insurance rate.
Most people will have made one or more of these mistakes but the good news is that correcting these mistakes is usually very easy. If you review your policy once per year, make sure you are not over insuring your house, raise your deductibles, and shop around for a good home insurance rate you will be able to save a lot of money.
Also check out my other guide on Child Life Insurance.
Every homeowner needs to have a good insurance policy. It would be foolish to allow such a large investment to be unprotected and if you borrowed money to purchase your home your lender would no doubt require that you have adequate coverage before making a loan. You know how important having good coverage is but many people pay too much for their coverage and it is possible to lower your home insurance rate by avoiding the common mistakes that many people make.A very common mistake that a lot of people make is to over insure their home insurance rate. If you pay $250,000 for your house you do not need to have $250,000 worth of homeowners insurance. You need to have enough coverage to repair or rebuild your home if it was damaged or destroyed. A large portion of the purchase price of a house goes to the land that the house sits on. If your home was destroyed you would need enough coverage to rebuild the home but the dirt that your home sits on would not need to be replaced.
Another common mistake that inflates peoples home insurance rate is having deductibles that are too low. Raising your deductible from $250 to $500 could reduce your premium payments by as much as 25%
A big mistake that a huge percentage of people make is not reviewing their policy at least once per year. As home prices rise and fall the amount of coverage you need will change. If you make improvements to your house that increase its value you may want to actually increase the amount of coverage you have. In the current economy home values are falling and you may be carrying too much insurance.
One of the biggest mistakes that a lot of homebuyers make is to simply go with whichever insurance company their real estate agent recommends or whichever one has a nice looking ad in the phone book. Shopping for homeowners insurance is no different. You can go online, enter some information about your home and answer some questions, and in just a few minutes you will have multiple quotes from a number of different insurance companies allowing you to quickly and easily find a company that offers the coverage you need for your home insurance rate.
Most people will have made one or more of these mistakes but the good news is that correcting these mistakes is usually very easy. If you review your policy once per year, make sure you are not over insuring your house, raise your deductibles, and shop around for a good home insurance rate you will be able to save a lot of money.
Also check out my other guide on Child Life Insurance.
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