Cheaper Home Owner Insurance -- Reduce Your Costs Without Compromising Your Coverage

If you must attract big discounts on your homeowner insurance policy, then you must NOT miss certain things. Following are some of such things...

1. You'll pay more affordable rates if you get group homeowner's insurance. You can confirm from associations you are part of since they may have group discounts for homeowner insurance.

I will, however, advise that you still get and compare quotes from other insurers that your association may have no affiliations with. This is because you might end up getting an insurance company that is ready to take less than you'll even get with an association's discount. There is stiff competition in the home insurance niche and you can benefit from this to get cheaper rates if you spend some time to do extensive shopping and comparisons.

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2. You qualify for a retiree discount once you are retired. Since not every company gives this discount, ask your agent before you sign your policy.

The reason for this discount is that those who're almost always at home are less likely to be burglarized. Furthermore, Fires will be quickly spotted and put off if someone is always around.

3. You are eligible for a loyalty discount if you've stayed with an insurer for up to three years. Most insurers will give discounts once you keep your policy with them for three years and above. However, I do NOT expect that you stay with one insurance company for that long just because you are waiting to qualify for a loyalty discount.

If it's about paying less, you'll likely still be able to pay lower than you are paying at any point in time. The key is doing thorough shopping. I recommend that you get quotes from companies you have never obtained quotes from time to time.

4. Do not insure your home along with the land it is standing on as this will cost you more but is very unnecessary. A good number of people pay much more than they should on homeowners' insurance due to this mistake. Insuring your home for the full price you bought it without deducting the value of the land it stands on is a big mistake.

If you made this mistake quickly meet with your agent and check through your home owner insurance policy. Deduct the cost of your land and buy coverage only for your structures and its contents.

This implies that you'll pay a lot less on home insurance. Bearing in mind that insurance is for things that can be lost or damaged, insuring the land which can neither be lost or damaged isn't right.

5. Yearly premium payments will save you a lot when compared to monthly payments. Your insurance carrier is compelled to send you 12 notices for monthly payments as against one for yearly payments. This costs them more.

The cost shoots up if you add the fact that they pay transaction fees for processing each check you send them monthly. They pay transaction charges 12 times instead of once anually for monthly premiums. And, if you really come to think of it, these extra costs are ultimately added to your rates.

Therefore choose annual payments instead if you intend to save this way. What you will save could be as high as 8.5% of your total monthly payments over the course of just one year.

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6. Your credit history will make you spend more or less. People who have very good ratings spend far less than folks who have poor ratings. A poor credit rating suggests that you've not been paying your bills in a timely fashion. No insurer is happy with this as it suggests a pattern you're very likely to repeat in the payment of premiums. This makes you a bigger risk and so attracts a higher rate.

It'll, therefore, be a good step to do something about improving your credit rating. Apart from the other benefits in doing so, it'll ensure you get lower homeowner insurance premiums.

7. You could save several hundreds of dollars by just obtaining and comparing quotes from at least five quotes sites. And, it will take only a total of 25 minutes.