How to Find the Cheapest House Insurance
When making the transition from renter to homeowner, it's helpful to know how to find the cheapest house insurance. In addition to being required by your mortgage company, homeowners insurance is there to protect you from financial losses caused by fire, theft, vandalism or natural disasters. You should have coverage for the structure of your home, your personal possessions, your liability to others and any living expenses you'd have if you needed to vacate the home for repairs.
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Instructions
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Increase your deductible. The easiest way to save money on your homeowners insurance is to simply increase your deductible. However, since you will need to be able to pay this amount in the event of a claim, you shouldn't raise your deductible above what is easily accessible in your personal savings.
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Use an insurance comparison website to check rates. Just like car insurance, prices for house insurance can vary significantly. If you're concerned about finding the cheapest house insurance, plan to get quotes from at least three companies.
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Ask your mortgage company for advice. If your mortgage payment includes house insurance, a representative from the mortgage company may be able to suggest an agent who can offer affordable coverage.
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Check into group coverage. Some companies offer group discounts for homeowners insurance as a benefit to their employees. Professional organizations and alumni associations may also offer home insurance discounts that can give you a better deal than buying a policy on your own.
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Look for discounts. Many times you can save money by having multiple insurance policies with the same company. For example, you may want to contact your auto insurance carrier to see if discounts are offered for people who also purchase homeowners insurance. Sometimes companies also offer discounts for senior citizens, people who install security systems from selected companies, people who live in low-crime areas or people who refer other family members to the company.
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Tips & Warnings
Saving money isn't the only concern when buying homeowners insurance. Take the time to read your policy carefully before you sign it. Ask questions if you don't understand something.
Once you've purchased your insurance, plan on comparing rates again in three to five years. The company with the best deal now may not have the cheapest house insurance in the future.
A standard homeowners insurance policy doesn't cover flooding or earthquakes. Separate coverage must be purchased if this is a concern.
If you work out of your home running a daycare or other home-based business, a regular house insurance policy will not cover liability for these activities. You will need additional insurance to be protected.
