Every cent counts. This is especially true today with prices on food, gas, healthcare, lumber, and other consumer goods skyrocketing. This also applies to homeowner’s insurance. If you can save on it, why not? Thus, if you’re thinking about purchasing a home, you’ll need homeowner’s insurance as well. Getting the best value for the money can be challenging where this is concerned, so here are 4 tips to ensure you get a premium rate that is fair and reasonable:
Homeowner’s Insurance Premium Rates
- Bundle your homeowner’s insurance with your auto insurance – most insurance companies offer significant discounts if you purchase multiple policies from them. For instance, if your insurer offers auto liability and homeowner’s insurance, you’ll probably wind up with a lower premium than if you purchased them from two separate insurers. Start by contacting your auto insurer first, especially if you’ve been a policyholder with them for a long time. Remember, the key is to ensure that your cost will be lower by combining policies instead of purchasing them separately.
- Do plenty of comparison shopping – once you’ve completed Tip #1 above, compare the rate you were quoted with several (at least 4 to 6) other insurance companies. Be sure to research the level of service you’ll receive if you ever have to file a claim. Ask other family members and friends about their insurance coverage. Have they ever had to file a claim? What was the experience like? Be sure to check with the BBB, the NAIC (National Association of Insurance Commissioners), and the insurance department of your state for complaints and ratings.
- Consider raising your deductible – if you’re operating on a tight budget and you have to ensure that you make every dollar count, you might want to consider raising the amount of your deductible. This often helps individuals when they are purchasing a home and have already spent a lot of money on closing costs, down payments, and other fees. The higher the deductible is, the lower your monthly premium will be.
- Upgrade your home security system – by installing a top-rated fire sprinkler system and upgrading to a security system (burglar and fire alarm) that rings at the nearest monitoring station, some insurance companies will discount your premium rate as much as 15% to 20%. Installing a burglar alarm, deadbolts on all doors that lead outside, and a smoke detector, your insurer will usually give you a 5% discount. And it keeps you safer too. Isn’t that a good investment for your own safety and helps you save more?
Apply For a Mortgage Today at Front Range Mortgage
To learn more about homeowner’s insurance companies and how it plays a role in getting a home mortgage, contact Front Range Mortgage at (303) 500-1900 today.