You are totally free to NOT insure your residential property unless it is being financed and you still have a mortgage on it. But in spite of this you’ll agree with me that folks still prefer to keep a home insurance policy even after they have paid off their mortgage. For most of us, our home represents our single most valuable investment and/or property. So, we certainly don’t mind the extra cost that buying protection against its loss entails.

However, people would still be happy if they’re to find a way to take care of this most valuable investment without the high cost involved in it. Good a thing, this article presents practical ways to reduce your home insurance rates.

Home owners Insurance Quotes

1. It is more expensive but very unnecessary to insure the land on which your house is built. Those who ignorantly do this are paying a lot more than would do them any good. You have made the same mistake if you insured your house for the cost you purchased it without checking the cost of the land it’s built on and subtracting it.

For those who have ignorantly done this, call your agent and check your home insurance coverage again. Subtract the cost of your land and buy coverage only for your house and its contents.

Your rate will be cheaper and you’ll still have adequate coverage if you do this right. Bear it in mind that insuring the land your home is standing on is plain waste of money since it does you no good whatsoever.

2. Your credit history has a huge impact on your rate. You will pay higher home insurance rates if you have a low credit rating. If your credit rating is poor then you’ve NOT been faithful in paying up your bills. No insurer is happy with this as it suggests a behavior you are quite likely to repeat in the payment of rates. This marks you out as a bigger risk and so attracts a higher rate.

Therefore, it will do you much good to pay all your bills once they are due. You’ll get cheaper premiums if you do.

3. Electing to pay your premiums monthly results in more expensive premiums than you’d spend if you choose to pay annually. An insurer is compelled to send you 12 notices for monthly payments as opposed to one for yearly payments. This increases their overhead.

If you include the fact that each check you send is considered a transaction by their bankers, you’ll see that they still spend some more on transaction charges for each check you pay in. Twelve checks mean Twelve transactions and will attract Twelve separate fees.. These and other costs so incurred by your insurer are eventually paid by you, the policy holder..

So, you will get cheaper premiums if you choose to pay your rates annually. What you’ll save could be as high as 8.5% of your total monthly payments over the course of just one year.

4. Ensure that the exterior of your home is fire-safe and your premium will be lower. Having things that are highly inflammable or that aid combustion around your building will make you pay more expensive rates. As simple as it seems, cutting back bushes and maintaining them up to 10 feet from your structures will help reduce your premium. This is because how fire-safe a home is goes a long way in determining what it will cost to insure it.

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