When it comes to purchasing a home, it can be one of the most exciting and overwhelming times of your life. You can often get so caught up in looking for the perfect home and securing a mortgage with a decent interest rate that you forget that you are going to need home insurance. In fact, you will likely need it before you can even close on your new home, and it should be a cost that is factored into your monthly budget. It is important to know that all insurance companies and policies are not created equally. Here are a few tips that will help you save money while ensuring that you choose a quality policy to protect one of your largest-ever investments that you'll make in your lifetime:
1. Build Your Credit
Most people know that their credit score is a very important number when it comes to a favorable interest rate, but what a lot of people are not aware of is the fact that it is also an important factor in determining what you'll pay for your homeowner's insurance. Insurers use your credit score as one of the several factors in determining your overall risk as a policyholder. The better the credit you have, the less likely you are to file an insurance claim – or so the insurance company thinks. So, make sure to get your free annual credit report, report any errors and ensure you are making your monthly payments on time.
2. Comparison Shop
Don't assume that you have to get a quote from one insurance carrier and than actually pay for that policy. You are allowed to shop around, and it is actually encouraged. In fact, you may find that this is to your benefit. Try to get quotes from at least three different insurance companies so that you can compare the policies. Each carrier uses a different algorithm to determine premiums. For example, you may find that one company can offer you X amount of coverage for $100 while another company can offer you twice as much coverage for $75.
3. Consider Bundling Your Policies
If you have auto insurance, you may want to consider purchasing your home insurance from the same company and bundling the policies together. If they don't offer both types of insurance, you may want to consider finding a company that does, as you can usually save a significant amount on your yearly premium. Anything that you own that requires insurance – a boat, motorcycle, ATV, etc. – can be bundled into one policy with your home to save you money, so make sure to ask about this.
Share30 March 2016
