Home Owners Insurance -- Seven Sure Tips

Contrary to what you might be made to believe, it's quite easy to position yourself for a cheaper rate. The two things that are holding you from attracting a better rate at the moment are relevant information and a resolve to use the information you get -- Nothing more. Let us now look at a number of time-tested ways to get more for a lot less...

1. Do not insure your home along with the land it is built on as this is more expensive but quite needless. Folks do this ignorantly. They just insure their home for its complete value without deducting the cost of the land.

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

Your rate will be more affordable and you'll still have enough coverage if you do this right. Since insurance is for things that can be lost or damaged, insuring the land which can neither get lost or damaged isn't a smart move.

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2. Your credit rating has a serious impact on what you pay. The lower your credit rating, the higher the rates you get. What your credit rating shows is how you have handled your bills and it speaks badly about you if it's a poor one. An insurance company takes this to mean that you're not financially very responsible and will likely default in paying your rates. If you are seen as a potential defaulter, it makes you a bigger risk and attracts more expensive rates than otherwise.

It will, therefore, be a smart step to do something about improving your credit rating. It will help you get more affordable rates among other things.

3. Making your premium payments once every year will save you much when compared to monthly payments. A major reason for this is the cost an insurer incurs by posting you 12 bills instead of just one each year.

If you add to the fact that each check you make out is seen as a transaction by their bankers, you will see that they still pay some more on transaction fees for each check you pay in. 12 checks mean 12 transactions which incur 12 different transaction charges. These and other charges so incurred by your insurance company are eventually borne by you, the insured..

Therefore, you will get lower rates if you choose to pay your premiums annually. What you will 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 cheaper. Having things that are highly inflammable or that aid combustion around your building will make you pay higher rates. Although cutting bushes around your house looks simple, you will get lower premiums if you do keep them at a distance of at least ten feet from your structures. The likelihood of fire in a home is a very strong factor that determines your home insurance rate.

5. You'll as well enjoy a discount if you have motion-sensitive lighting on your property. Your home becomes a no-go area for thieves as they'll be noticed easily. The risk of burglary is a key factor in calculating a home's risk to an insurer and, by extension, your premium.

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6. Having dead-bolt locks on every exterior door will reduce your home insurance premium. This makes it difficult for intruders or burglars to break in. And because a home's risk of burglary is a major determinant of home insurance premiums, you will spend far less.

7. Having window locks on each of your windows will help lower your home's risk of burglary. You can take this to another level by building in burglary-proof bars on all your windows. Therefore, if you are not bothered by having burglary-proof bars in your house, have them fixed and you will be charged a lot less in your home insurance premium.
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