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It’s yours to decide whether or not to insure your home if you paid for it cash without any mortgagor. But in spite of this you’ll agree with me that people still prefer to keep a home insurance policy even after they have cleared their mortgage. They do this because they know that their home is a precious investment that they must take care of by all means. 

But we all will be glad to pay much less if the quality of coverage we get won’t be compromised. Good a thing, this article presents practical ways to reduce your home insurance rates. 

1. Make sure you do NOT forget to subtract the land’s worth from your home’s cost as you apply for a home insurance policy. Some people spend much more than they should on home insurance due to this mistake. You’ve made the same mistake if you insured your house for the price you bought it without finding out the cost of the land it is standing on and deducting it. 

If you did this quickly call your agent and re-evaluate your home insurance policy. Lower your coverage to the cost of your home and its contents minus the land’s value. 

Your premium will be cheaper 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 since it does NOT give you any added advantage. 

2. Your rate is influenced by your credit history. You will pay higher home insurance rates if you have a low credit rating. What your credit rating reveals is how you treat your bills and it speaks badly about you if it’s a poor one. This is a pattern that most insurers believe will be exhibited in the way you pay up your premiums. This makes you a higher risk to them and you, therefore, are made to pay much more than someone else with the same profile that has an excellent rating|If you are seen as a potential defaulter, it makes you a bigger risk and attracts much higher premiums than otherwise. 

Therefore, it is a wise decision to pay all your bills once they are due. You’ll get cheaper premiums if you do. 

3. Choosing to pay your premiums on a monthly basis results in higher rates than you’d pay if you choose to pay annually. A strong reason for this is the cost an insurance company incurs by posting you 12 payment notices instead of just one each year. 

If you include the fact that each check you make out is seen as a transaction by their bankers, you will see that they still spend some more on transaction fees for each check you pay in. 12 checks mean 12 transactions which mean 12 separate transaction charges. And as with everything else, it is you the client or insured who bears that cost|And, believe it or not, these extra overheads are eventually added to your rates. 

You will make considerable savings if you choose to pay annually. You could save up to a month’s premium within a year. 

Get dirt cheap home insurance rates

4. A fire-safe home exterior will help lower your rates. Do you have things that could likely aid combustion near your structure? They will make you pay more. Although cutting bushes around your house looks mundane, you’ll get cheaper rates if you do keep them at a distance of at least ten feet from your structures. This is because how fire-safe a house is goes a long way in shaping what it will cost to insure it. 

5. Motion-sensitive lighting lowers your home’s risk of burglary and, therefore, makes it easier for you to get cheaper home insurance premiums. Burglars understandably do NOT like to operate in any environment they could be easily noticed or caught. Your rate will be reduced you have reduced your home’s risk of burglary through this kind of lighting. 

6. Dead-bolt locks on all your exterior doors will help you attract a lower rate. They will make it more difficult for burglars to break into your home. And as you know, the lower the risk of burglary in a home, the more affordable  premiums it will draw. 

7. You might save some hundreds of dollars by simply obtaining and comparing quotes from about five insurance quotes sites. And, it will require only a total of 25 minutes.

Find the best online homeowners insurance quote

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