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Tips for Cheaper Homeowners Insurance Premiums

The real trick to having the most control over your homeowner insurance premium costs is to start considering the factors of insurance costs before you even start the buying process. Most people when searching for a home begin with the right number of bedrooms and bathrooms without the first thought of insurance premiums until it’s time to close the deal. This article will lay out some tips to help you save money in the long term and make all the difference when buying your home.

You hear this from Real Estate agents all the time, Location, Location, Location can play a huge role on your insurance rate. Start by looking in the area you want to be in. Use crime statistics to help with the search. Even in states with higher than average premiums, you can always find homes you love that aren’t highly affected.

Many insurance companies offer discount rates when you purchase a new home. Due to the fact that it is generally constructed with the latest safety codes. If you are deciding between a new construction and a home more than ten years old and they’re similar size and cost, choose the newer one.

The cost of homeowners insurance is based on the cost to construct your house, not the market value. Often you can control this piece of the equation by choosing a home that’s smaller over a bigger home. Now every family is different and has different needs, but if you don’t really need the extra 2000 square feet you’ll save more in insurance payments.

Credit Activity can also affect your insurance premium. Often a person searching to buy a house will be likely to go through loan companies first to discover how much he or she can borrow. Going through a mortgage broker results in quite a number of inquiries for bank loans. Which, not only affects your score, but it causes more entries on your history information, which is what insurance companies check for rating purposes. Applying for mortgages, car loans, private loans, or other large loans will hit your credit score hard and lower it; and the lower your credit score the higher your premium.

Additionally, some insurance companies won’t run credit or claims history until they’re sure you’re buying the policy to minimize their costs. Therefore, ask your insurance agent to finalize the quote and run all your reports up front. It’s also a way to lock in an estimated insurance premium with less activity on your credit versus waiting until four or five banks have made credit inquiries.




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