Home Insurance -- Seven Tested Tips

Contrary to what you might be made to believe, it is a lot easy to position yourself for a cheaper rate. All you have to do to achieve this end are little bits of information (Put into good use). Let's get into the steps you need to enjoy cheaper rates...

1. Make sure you do NOT fail to subtract the land's worth from the home's value while applying for a home insurance policy. Folks do this ignorantly. You've made the same mistake if you insured your home for the price you purchased it without finding out the cost of the land it is built on and subtracting it.

For those who've mistakenly done this, call your agent and go through your home insurance coverage again. Subtract the value of your land and use only the cost of your structures and its contents.

Your premium will be more affordable and you'll still have adequate coverage if you do this right. Don't ever forget that insuring the land your home is standing on is real waste of money because it does NOT give you any added advantage.

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2. Your rate is partly determined by your credit rating. People who have very good ratings spend far less than people who have poor ratings. If your credit rating is poor then you've NOT been faithful in paying up your bills. An insurance company interprets this to mean that you are financially irresponsible and will possibly default in paying your rates. This makes you a bigger risk and therefore justifies a higher rate.

It will, therefore, be a smart step to do something about making your credit rating better. You will get lower rates if you do.

3. You will get cheaper rates if you elect to pay your rates yearly and not monthly. This is because posting 12 bills by mail each month costs your insurance company much.

The cost shoots up if you add the fact that they pay transaction charges for processing each check you send them monthly. twelve checks are 12 transactions which incur 12 different transaction charges. And as with every other thing, it is you the customer or policy holder who will be responsible for that cost.

Therefore choose annual payments instead if you intend to save through this means. The real amount you could save may differ but you may be able to save up to a month's premium worth with some insurers if you choose this option.

4. Make the exterior of your house fire-safe and you'll bring down your home insurance rate. Having things that are very inflammable or that help combustion around your building will make you pay more expensive rates. Even though cutting bushes around your home looks simple, you'll get lower premiums if you do keep them at a distance of at least ten feet from your building. Fire-safety is a major point that determines what you pay as premiums.

5. You will also get a discount if you have motion-sensitive lighting in your home. Your house becomes a no-go area for thieves as they'll be noticed easily. The risk of burglary is a strong factor in checking a home's risk to an insurance company and, by extension, your premium.

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6. Dead-bolt locks on all doors to the exterior will help you attract a more affordable rate. This makes it difficult for intruders or burglars to have their way. And since a home's risk of burglary is a strong determinant of home insurance rates, you will spend far less.

7. Do you have locks on each of your windows? If you do NOT you'll be paying more because of that. You can take this to another level by building in burglary-proof bars on all your windows. If you're not one of those people who feel so uncomfortable with these kind of fittings, they'll help you get reasonable discounts. If you're not one of those folks who insist that having such makes them feel imprisoned in their own home, have them fixed if you intend to reduce your home insurance rates considerably.
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