How to Lower Your Home Insurance Costs

One of the biggest investments of your life will be the purchase of your home. There are a lot of expenses associated with owning a home, so it is important to try to lower your costs anywhere you can.

But, can that really be done? Yes, it can! This is what you have to do:

1. First of all, make sure to check the Comprehensive Loss Underwriting Exchange (CLUE) report for the property you want to buy. Most insurers use these reports as a reason to deny coverage, so it is important that you read them carefully. Also, a home inspection, which confirms the problems mentioned in the report were fixed, will help.

2. When you have a contract on the home, you should start your application for Home Owners’ Insurance. You will need proof of a policy in order to be approved for your loan.

3. Keep in mind that it is essential to maintain good credit, as most insurers determine rates based on credit.

4. To qualify for savings buy your homeowners and auto policies from the same company.

5. Another trick that could help you lower insurance costs is to raise your deductibles

6. Don’t forget to see if you qualify for any discounts. For instance, people that spend more time home, like retirees, can get a discount on theft insurance. Also, if you are part of any group – associations or alumni organizations – you may get a discount as well, as many groups have insurance coverage.

7. Ask your agent about insurance plans backed by the government, as in some areas the government support lower rates insurance plans.

8. Every year you should reevaluate your possessions and policy limits to see if you still need the same coverage.

9. Insure your house for the correct amount, as you’re paying for replacement cost and not the market value!

Consult with your agent whenever you are not sure about something, as their experience can easily contribute to you making a better decision.

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