For many people, homeowner's insurance is an annoying expense that is legally required. For others, homeowner's insurance is a valuable investment that offers peace of mind. No matter how you feel about it, this insurance is imperative if you own a home. Thankfully, there are ways to ensure you have an affordable policy that offers sufficient coverage on your home. Here are a few tips to help you save money on your homeowner's insurance premiums.
Ask and You Shall Receive
Most people are surprised by the fact if you ask your insurance company for discounts, you will probably get them. Many insurance companies will offer unique discounts that you may not be aware of.
For example, consider asking your auto insurance policy holder if they offer homeowner's policies. Bundling your auto, life, and homeowner's policies together will most likely give you a discount.
If you are a long-term customer of one specific insurance company, you may also be eligible for discounts.
You should also make sure your insurance company has accurate information on your house because certain amenities can cut premium costs. Brick homes are more affordable to insure than standard homes with vinyl siding. Also, certain safety features, such as security systems, make a home more affordable to insure.
Give yourself Some (Good) Credit
Your credit score is important when buying a home and car in addition to applying for a credit card, but good credit also helps secure affordable insurance premiums.
Insurance companies will run a credit check on you when applying for new coverage. Your credit-based insurance score, or CBI, will represent your credit history according to insurance companies. It will most likely be different than your FICO score, which is used by credit agencies when applying for loans and credit cards.
Just like with your FICO score, the higher your credit is, the better rates you will get.
To improve your CBI in addition to boosting your FICO, pay down some of your debt and take care of any collections you may have affecting your credit scores. Also, consider requesting credit line increases on current accounts. This improves your debt-to-net ratio, showing creditors you have more credit available than you owe, which will increase both your CBI and FICO scores.
While an essential policy, your homeowner's insurance does not have to ruin you financially. These tips will help you find an affordable and effective policy to protect your home, family, and finances. Contact a service, like Homeowners Insurance Houston, for more help.