6 Ways to Lower Your Houston Homeowners Insurance Costs
If you are a new Houston home buyer and have just spent a lot of money on inspections, surveys, closing costs, mortgage charges and many other things that come along with buying a home, you are probably looking for savings anywhere that you can. Well good news Houston home buyers. We have some tips [http://www.mikegrayrealty.com] that may save you some money on your home insurance. Remember, once you buy a home you will want to get it insured and if you have a loan you will be required to get it insured. Below are some tips that can save you money once you have bought your dream home.
Homeowner's insurance prices can vary by hundreds of dollars, depending on the company you buy your policy from. Here are some things you need to consider.
1. Shop Around. It may take some time, but it could pay off big in the end. Ask your friends, contact your national and state insurance departments where you may find information on typical rates charged by major insurers. Also check consumer guides, insurance agents, etc. This will give you an idea of prices ranges, but don't consider price alone. The insurer you choose should offer a fair price AND deliver quality service. Talk to a number of insurers to get a feeling for the type of service they would give. Last, check the financial stability of the companies with rating companies such as A.M. Best and Standard & Poor's. When you have narrowed the field to three, get price quotes.
2. Raise Your Deductible. A deductible is the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. Nowadays, most insurance companies recommend a deductible of at least $500. If you can afford to raise your deductible to $1,000, you may save as much as 25%.
3. Don't confuse what you paid for your house with rebuilding costs. Don't include the value of the land under your house when deciding how much homeowners insurance to buy. If you do, you will pay a higher premium than you should.
4. Improve your home security. You can usually get discounts for smoke detector, burglar alarms or dead-bold locks. Some offer even more discount for sprinkler systems and fire/burglar alarms that ring at the police, fire or other monitoring stations. Find out what your insurer recommends, how much the device would cost and how much you'd save on premiums.
5. Maintain a good credit record. Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price homeowners insurance policies. Check your credit record regularly to be sure your record remains accurate.
And finally, a tip that can be very important when buying a home.
6. When you're buying a home, consider the cost of homeowners insurance. Check the CLUE (Comprehensive Loss Underwriting Exchange) report of the home you are thinking of buying. These reports contain the insurance claim history of the property and can help you judge some of the problems the house may have. Many factors can be involved in the pricing of homeowners insurance on a particular home. Choosing your home wisely could cut your premiums by 5 to 15 percent.
When you buy your Houston home [http://www.exitcomplete.com] there are many things to consider and many items to cover. Homeowners insurance really counts when you have to make a claim. Look at what you are getting or losing when you shop and see if the price you are being quoted will really take care of you in the event you need it. Do not buy the home of your dreams only to have your dreams wiped away by an insurance policy that does not replace your home or repair it the way you expect. Many homebuyers have found out too late that their insurance sounded a lot better than it performed. As a real estate broker in Houston I have seen the story play out over and over from both satisfied and dissatisfied homeowners, especially after Hurricane Ike. As in most things, if it sounds too good to be true, well you know the rest.
Homeowner's insurance prices can vary by hundreds of dollars, depending on the company you buy your policy from. Here are some things you need to consider.
1. Shop Around. It may take some time, but it could pay off big in the end. Ask your friends, contact your national and state insurance departments where you may find information on typical rates charged by major insurers. Also check consumer guides, insurance agents, etc. This will give you an idea of prices ranges, but don't consider price alone. The insurer you choose should offer a fair price AND deliver quality service. Talk to a number of insurers to get a feeling for the type of service they would give. Last, check the financial stability of the companies with rating companies such as A.M. Best and Standard & Poor's. When you have narrowed the field to three, get price quotes.
2. Raise Your Deductible. A deductible is the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. Nowadays, most insurance companies recommend a deductible of at least $500. If you can afford to raise your deductible to $1,000, you may save as much as 25%.
3. Don't confuse what you paid for your house with rebuilding costs. Don't include the value of the land under your house when deciding how much homeowners insurance to buy. If you do, you will pay a higher premium than you should.
4. Improve your home security. You can usually get discounts for smoke detector, burglar alarms or dead-bold locks. Some offer even more discount for sprinkler systems and fire/burglar alarms that ring at the police, fire or other monitoring stations. Find out what your insurer recommends, how much the device would cost and how much you'd save on premiums.
5. Maintain a good credit record. Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price homeowners insurance policies. Check your credit record regularly to be sure your record remains accurate.
And finally, a tip that can be very important when buying a home.
6. When you're buying a home, consider the cost of homeowners insurance. Check the CLUE (Comprehensive Loss Underwriting Exchange) report of the home you are thinking of buying. These reports contain the insurance claim history of the property and can help you judge some of the problems the house may have. Many factors can be involved in the pricing of homeowners insurance on a particular home. Choosing your home wisely could cut your premiums by 5 to 15 percent.
When you buy your Houston home [http://www.exitcomplete.com] there are many things to consider and many items to cover. Homeowners insurance really counts when you have to make a claim. Look at what you are getting or losing when you shop and see if the price you are being quoted will really take care of you in the event you need it. Do not buy the home of your dreams only to have your dreams wiped away by an insurance policy that does not replace your home or repair it the way you expect. Many homebuyers have found out too late that their insurance sounded a lot better than it performed. As a real estate broker in Houston I have seen the story play out over and over from both satisfied and dissatisfied homeowners, especially after Hurricane Ike. As in most things, if it sounds too good to be true, well you know the rest.
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