Saturday, 18 May 2013

10 Things Can Lower Or Raise Home Insurance Rates

                    While buying a home for yourself, there are few things that you should keep in mind which can affect your insurance rates. There are many things that can lower or raise your home insurance rates by
hundreds, even thousands of dollars per payment. Here are few ways to minimize the cost of your homeowner's insurance.

1) Location Of Your Home :-
                     Surroundings of your home affects insurance premium. If you live in an area which is prone to natural disasters such as flood, hurricanes and earthquake then you will have to pay more for homeowners insurance. And type of insurance becomes so expensive that many big insurers refuse to provide homeowners with coverage in certain high risk areas. If the home is susceptible to earthquakes or floods, you will need a separate policy no matter where you live.
2)   How Much Is Enough :-
                     Many homeowners home are under insured because they have not bought enough insurance to cover the replacement value of their home. And many are over insured because they calculated wrong or might be because they calculated by including the value of the land. Make sure you are properly insured for the rates you pay.

3) Construction Material :-
                    The quality of material used to construct a home will effects your premium. Example, homes built with bricks are less expensive to insure than wood frame homes are. Also if the roof or the plumbing has not been updated in 25 years, that means you are at a high risk of getting an expensive insurance group. Where as if your roof is newly constructed of impact resistant material then you could qualify for a discount. 

4) How's The Electrical System :-
                     The electrical system does not need to be replaced, unlike the plumbing and the roof to be replaced to qualify for a good insurance rating. But is have to been updated with in past 25 years to meet current codes.
5) Surrounding Of Your Home :-
                       Your neighborhood also plays an important role in your homeowners insurance policy. Example, if your home is near to a police station or to a fire department may lower your yearly premium. Living in a high crime zone will probably increase the rates.

6) How's Your Home Security :-
                        If you have a smoke detector, burglar alarm or dead-bolt locks at your home you can get a discount from your premium.Some of the insurance companies offer a good cut if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other required stations. But these systems are not cheap and not every system qualifies for discount. Before installing these systems at your place its better you find out what kind your insurer recommends, how much it is going to cost and how much you'd save on premiums.

7) How New Your Home Is  -
                        A new home has new utilities and you can get a very good discount also.

8) Combine your Home And Auto Insurance Policies :-
                       Consider buying both insurance policies from a company that offers both. Because some of the companies offer discounts if you buy both types of coverage from them. Make sure the price is lower by buying two polices from the same companies then buying them from different companies.   

9) Don't Make Minor Claims :-
                        Don't make repeated claims for minor problems because it will raise your premium. Repairing small problems in a timely manner will help you avoid big losses in future.

10) Keep Your Insurance Up To Date :-
                         Once in a year, before your home insurance policy is due to renew, find out the current policy read all the details and call your insurance agent to discuss any changes in your situation that occurred during the year.  

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