Keeping Home Insurance Premiums Low


Most homeowners want to find ways to lower their premiums on home insurance. The best way to achieve this by understanding their policy, maintaining good credit, and using insurance wisely.

Understanding home owners policy

A prudent first step to keeping premiums low is for homeowners to read and understand the home insurance policy. Many policyholders do not fully understand the terms and conditions of their policies. Most policies will set a due date for payment each month. Being even a few days late on one payment may cause late fees and increase the likelihood of the insurance company increasing premiums substantially.

Non-adherence to requirements such as acceptable forms of payment can also lead to increased premiums. Two specific types of limitations that homeowners should check for concern dogs and swimming pools.

Some policies can limit the type of dog a homeowner can possess. Certain breeds, such as Pit Bulls, can be expressly forbidden due to liability concerns. Pools may not be allowed outright or measures such as gates may be mandated.

Performing tasks mandated in the policy such as maintaining a defensible space from fire should always be carried out.

Keep a good credit score

A lower credit score can translate to higher premiums as a homeowner with a more marginal credit rating may be considered a higher risk. This can lead to an increase in policy premiums.

Consider alternatives

A way to save money on home insurance premiums is to bundle home insurance with other insurance policies. Ask your home insurance agent if combining home and vehicle insurance would yield lower premiums on home insurance.

Many insurance companies will offer a discount to policyholders who purchase more then one policy. Consider increasing the deductible on the home insurance policy. Raising the deductible by a few hundred dollars can yield substantial savings.

Inquire with current insurance agency as to possible discounts on current premiums. Call different insurance companies and compare rates. Do not let insurance lapse. Some mortgage companies yield significant profit by forcing holders of mortgages to purchase specific policies at a substantially increased cost after such a lapse occurs.

Use insurance wisely

Minor problems that may only cost slightly more then current deductible may not be worth claiming. Some insurance companies may increase the cost of premiums.

In conclusion

A home insurance policy is a legal contract between the homeowner and the insurance company. Both sides are legally required to perform certain actions. Consulting an attorney is always an option for a dissatisfied homeowner.

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