1. Improve your credit score
Insurance
providers, not only those who specialize in homeowner's insurance, now give
weight to a customer's credit rating when charging the rate on their policies. Insurers
look at the number of claims their clients will file in one year and then price
their policies based on how much will be enough to cover the minimum amount of
liability. Based on several studies, consumers with low credit scores are more
likely to file claims than those with higher scores. Hence, consumers with
higher ratings get the better terms and rates. To get you the better price, the
following steps will improve your credit score by as much as 30 points and in
as little as 30 days. These tips are recommended by the Budgeting section of
The Nest:
-
Reduce
your total outstanding debt.
-
Be
on time with payments; always avoid late payments.
-
Ensure
that your credit report is error-free. Immediately dispute any discovered
error.
-
Put
off any new charges on credit cards until the next billing cycle.
2. Purchase all your insurance needs from one
same company
Many
insurers offer package discounts. Rather than buying your auto, home and other
policies from separate companies, bundling them up and buying them from one
company can save up to thousands of dollars. Being a repeat customer by
renewing with the same company should also save you money.
3. Increase your home security and lower your
risk
Stronger
locks, a burglar alarm system, shatterproof glass, stronger roofing materials,
storm shutters, etc. - these not only make your home more secure and disaster
proof, they can also qualify you for discounts. Increasing home security means
you are a lesser risk in the eyes of the insurer.
4. Opt for paperless billing and payment
Some
providers will charge their customers for paper billing and those who send
their payment checks via mail. Some offer discounts to customers who opt for
automatic deduction on their credit or checking accounts.
5. Update your home
If
your home is an old one, updating its features can lower the level of risk that
an insurer will attach to the home. Updating wiring and plumbing systems, for
example, can get you discounts on your premium. The same applies to home
fixtures, appliances and similar objects.
6. Being a senior citizen can get you
discounts
Homeowners
who are fifty-five years old or older may qualify for discounts on their
premiums. Many insurance providers give out discounts to the elderly. There are
also companies who offer lower rates to retirees who are likely to spend a
great deal of their time in their homes and, hence, would be able to attend to
a problem and probably prevent it from causing damage.
7. Make yearly appraisals
Do
this not only on the home itself but also on personal items covered by your
policy. The value of homes and possessions do change over a period of time. We
have witnessed how many homes saw their values take a plunge at the height of
the housing crisis. This is why a yearly appraisal is necessary. To reflect the
true worth of the items covered by policy.
