How to Get the Cheapest Homeowners Insurance

Homeowners insurance protects your home from expenses that arise due to natural calamities, fire, theft and vandalism. The insurance coverage depends on the value of your home and possessions. The premium rate depends on location, quality of construction and level of security. Do you want to buy the cheapest homeowners insurance? Here is how to do it.

Difficulty: Moderately Easy

Instructions

1. Estimate the value of your home and belongings based on the replacement value of your home and such things as interior furnishings, appliances, jewelry and electronics.

2. Allocate funds and plan your finances.

3. Go online and find out the variable cost of homeowners insurance. The annual premium can vary from $500 to $2000 depending on the company and the type of coverage.

4. Learn about the regulating authority responsible for insurance rates in the state where you reside. Remember, the rates for homeowners insurance need the approval of the insurance department of the state.

5. Get quotes from different insurance companies. Talk to local agents and compare quotes. Most reputed insurance companies have Web sites where you can request online quotes.

6. Combine policies, if necessary. For example, if you have an auto policy or plan to buy one, then combining this with a homeowners policy will lower your premium rate.

7. Inquire about tie-ups and alliances. Many insurance companies have business tie-ups with home security system providers. If you buy and install a security system from companies’ associate list, you may qualify for discounts on installations as well as a lower premium quote.

8. Opt for security add-ons such as fire doors, carbon monoxide detectors and surveillance security cameras. Getting these installed will help you buy cheaper insurance.

9. Consider your age. Senior citizens above 62 years of age are eligible for premium discount by law.

10. Buy multiple policies from the same company for other family members’ homes. You will be eligible for more discounts.

11. If you smoke, try to quit. Chances are that your premium rate will be lower. As an added bonus, you and your loved ones will live a happier, healthier life.

Tips & Warnings

• If you are living in a neighborhood that has a low crime rate, you may get a cheaper insurance rate.
• Always consult your state department regarding regulating rules and laws that govern a homeowners insurance policy.
• Check your existing insurance policy and see if you benefit by getting a cheap homeowners’ cover.
• Cheaper is not always better. Do not get lured by promises and guarantees offered by some insurance companies. Make it a point to read the fine print before signing any insurance papers.