10 Things You Can Do to Save on Home Insurance
Posted by : Admin
There are many simple yet effective ways to save money on a home insurance policy. Here are ten tried and proven tips that will lower insurance costs for just about any homeowner.
1. Work on Your Credit Score
Your credit score has a large bearing on your home insurance policy price. Keep your score high by paying all bills on time and maintaining a low debt-to-income ratio.
2. Save up for a Mortgage Loan Deposit
Homeowners who can put down a 20% deposit on their new home can often avoid having to pay for private mortgage insurance that could add up to 2.25% to the original loan amount.
3. Go with a Short-Term Mortgage Loan
If your budget allows it, consider taking out a 10- to 15-year mortgage loan. The home insurance cost bundled into these loans will be lower than the cost of a home insurance policy bundled into a 30-year fixed rate loan.
4. Lock in Your Rate
Because your home insurance is bundled with the home mortgage loan, talk to a loan officer in Hendersonville about locking in the rate when taking out the loan. If you wait too long, mortgage rates may rise and leave you with a costly home insurance policy.
5. Make Appropriate Home Improvements
Home improvements that make your home more resilient to natural disaster can lower your home insurance costs.
6. Boost Your Home’s Security
Even simple home security measures such as motion-activated outdoor lighting and installing a home alarm system can significantly lower your home insurance rates.
7. Quit Smoking
Home insurers often offer discounts to households without smokers, which isn’t surprising when you consider that smoking is the leading cause of residential fires in the United States.
8. Consider Raising Your Deductible
Raising your deductible will lower your home insurance costs but could also leave you with a hefty bill in the event of a natural disaster. Use this tip with care and only raise your deductible if you know you’ll have the money on hand to pay for repairs should an unfortunate event occur.
9. Shop Around
Don’t settle for a home insurance policy that doesn’t meet your needs or fit well with your budget. Shop around until you find the insurance policy that is the best deal for you personally.
10. Bundle Your Policies
Bundling your home insurance with auto insurance and/or other forms of insurance can help you save a significant amount of money.
Mortgage Investors Group offers home insurance as part of many home mortgage loans and refinance loans. Get in touch with a mortgage lender to learn more about your options and discover which form of insurance is right for your new home.
