Purchasing a home is a big decision. It requires a lot of planning, some serious thought and a whole lot of money. It may be the largest investment you ever make. When insuring your home, you want to make sure you get a good deal with an affordable premium and a reasonable deductible. Here are some ways to get the best rate on your home owner’s insurance:
Learn about where you live.
Depending on where you live, you may require different types of coverage. If you live in a place that is prone to wildfires, you may want to be sure that you are covered for fire damage. If you live in a flood plain, ask your agent if they offer extra flood protection. This foresight might cost you a little more now, but could save you quite a bit in the long run.
Shop around.
The best way to get a good deal is to go out and look for one. Get as many quotes as you can and compare the coverage to the cost. Speak with an agent and let them know that you are doing your homework. They may be willing to bargain or offer you a special rate that isn’t advertised.
Check with your fellow HOA members.
If your Home Owner’s Association (HOA) requires certain types of insurance, get as many details as possible. If you’re new to the area, perhaps the members of your HOA know something that you don’t. The HOA may require certain coverage because multiple home owners have filed identical claims. They may also offer connections to local insurers. If your HOA is really organized, it’s possible that they already have a group rate with a specific insurance company.
Bundle your home owner’s insurance with your auto insurance.
If you currently have auto insurance with one provider, consider bundling. Your auto insurance agent should be able to tell you whether or not they offer home owner’s insurance. Most agents offer discounts if you have multiple policies through them.
Pay in advance.
Some insurance companies offer cheaper rates if you pay your premium in six-month increments instead of paying monthly. Some also offer discounts for paying your bill electronically instead of paying via snail mail.
Re-evaluate your policy every time you renew.
When it’s time to renew, start shopping around again. While it’s best to stay with one company and earn tenure, it’s OK to keep your current company on their toes. Let them know you are shopping, and they may offer you a better home insurance rate.