Most Affordable Home Insurance · Homeowner’s Insurance Tips

One of the most important responsibilities of any homeowner is making sure their property is adequately insured against damages—preferably with affordable home insurance. However, oftentimes the total costs of home insurance premiums can cost hundreds, or even thousands of dollars each year. By making smart choices before you buy your home and making periodic home insurance comparisons, you can keep your insurance rates to a minimum. The following seven tips will help you find the most affordable home insurance:

1. Select a higher deductible. Your deductible is the sum you’ll have to pay towards damages in the event of a claim. If you raise your deductible, it will result in lower premiums. Just make sure you have the cash to cover the deductible in case your home suffers damages.
2. Install an approved home security system. Nearly all insurance companies offer steep discounts if your home is equipped with security measures they approve. Home security systems and smoke alarms will almost certainly lead to a rate reduction of 15 to 20 percent.
3. Maintain good credit. Pay your bills on time and never exceed your credit limit. If you live by these rules, you’ll never pose a risk to any insurer (or lender), which will keep your insurance rates down.
4. Purchase your home and car insurance from the same company. Insurance companies give discounts to consumers who insure both their homes and their cars with them. When you compare home insurance quotes, be sure to consider the option of purchasing policies for all of your family’s cars along with your homeowners insurance policy.
5. Review a copy of the CLUE report before buying a new home. The CLUE report (Comprehensive Loss Underwriting Exchange) details the claims on a property over the last seven years, and plays a large part in determining the rates for insuring a new home. Check the CLUE report on any property you’re considering buying in order to see what types of claims were filed, and how much. Also make sure to choose a home that is close to the local police and fire departments. Then talk to your financial advisor to determine whether the home is a good investment.
6. Take measures to maximize your home’s disaster resistance. Install a reinforced roof and storm shutters, and flood-proof your foundation and basement. In addition, if the electrical, plumbing or heating is over 10 years old, install new to minimize the risk of fires or floods. All of these measures will result in lower insurance rates.
7. Only insure the repair and replacement value of the home’s structure, not the land. Unless your home’s on the edge of a cliff which gets beaten away by the waves during a bad storm, the land upon which your home is built isn’t likely to be destroyed or stolen. Subtract the value of your land when determining the repair or replacement value for which you wish to insure your home.