Homeowner Insurance -- Four Proven Tips For More Affordable Rates

It's really very easy for you to find adequate homeowners insurance coverage for a lot less. All you need to achieve this goal are pieces of information (that you'd have to implement, though). Following are a number of tips that will help you reach this goal...

1. It is more expensive and needless to insure the land on which your home is standing. A good number of people spend much more than they should on homeowners' insurance because they make this mistake. You've made same mistake if you insured your home for the cost you purchased it without checking the cost of the land it's standing on and subtracting it.

For those who have mistakenly done this, call your agent and check your home insurance coverage again. Deduct the value of your land and use only the cost of your structures and its contents.

This means you'll pay a lot less on home insurance. No matter what you do and who you meet, remember that the only things you insure are things that can be stolen or destroyed and your land is not one of such.

2. The amount you pay is influenced by your credit rating. You will pay higher homeowners' insurance rates if you have a poor credit rating. If your credit rating is poor then you've NOT been faithful in paying up your bills. An insurance company takes this to mean that you're financially irresponsible and will likely default in paying your rates. This marks you out as a bigger risk and so justifies a higher rate.

So do your utmost to pay all your bills in a promptly. You'll attract lower rates if you do.

3. You will pay lower rates if you choose to pay your rates yearly and not every month. A major reason for this is the cost an insurance company incurs for posting you 12 bills instead of just one yearlly.

If you add to the fact that each check you cut is seen as a transaction by their bankers, you will see that they still spend some more on transaction charges for each check you pay in. They pay transaction charges 12 times instead of once yearly for monthly premiums. And, believe it or not, these extra costs are ultimately added to your rates.

You will get reasonable savings if you start paying annually. What you'll save could be as high as 8.5% of your total monthly payments over the course of just one year.

4. You can reduce your homeowners insurance rates by asking for and evaluating quotes from at least five reputable insurance quotes sites.