Homeowners Insurance Rates
For most people, very few days come close to being as good as their home’s closing day. Signing the form, transferring ownership of the home to yourself, and moving into a home that instead of being rented, is owned, is a terrific achievement for most people. It’s the mark of a new era for you as a person, and it’s a financial transition between ‘living’ somewhere and being truly at home.
But for most homeowners, the act of buying their home doesn’t begin and end with signing a piece of paper and moving in. There’s a mortgage to consider – a massive expense, even for those with a relatively small home. There’s your home’s contents to purchase – a lofty bill, particularly for those that have lived in furnished, rented apartments for the earlier years of their lives.
Finally, there’s insurance – undoubtedly one of the most important elements of owning your own home. Available in various different forms, homeowners insurance is one of the most widely used and comprehensive insurance options out there. Covering everything from theft to natural disasters, it’s a one-stop-shop for homeowners looking to protect their home, its possessions, and its use.
In this guide, we’ll look at homeowners insurance rates across the country. We’ll compare different insurance companies, offering insight into how each one can protect you. We’ll explore the factors that contribute to your home’s expense – or lack of expense – when seeking insurance. And finally, we’ll take a look at how you can minimize your long-term homeowners insurance rates.
Let’s begin by looking at the industry as a whole, in all of its highly competitive glory. Like auto insurance and personal health insurance, the homeowners insurance world is highly competitive, difficult to break into, and costly to operate in. As such, it’s primarily made up of large insurance companies, with very few – if any – smaller providers offering comprehensive home insurance.
From Statefarm to Allstate, there are plenty of companies out there offering competitively priced homeowners insurance rates. As a consumer, your best bet is to shop around between the biggest insurance companies, as their rates can differ dramatically. It’s not uncommon to see huge gaps in the pricing used by homeowners insurance companies, based purely on their risk algorithms.
Beyond shopping between different providers, there are several ways in which you can keep your homeowners insurance rates down. One of the most obvious is to improve the safety of your home. As homeowners insurance covers both the cost of natural damage and theft, it’s important that you keep your home safe, secure, and difficult for thieves, vandals, or other criminals to enter.
Many homeowners insurance companies will give you a substantial discount on your costs of home insurance coverage if you install a burglar alarm system in your home. This doesn’t need to be very complex or technologically sophisticated – often it’s enough to install a simple motion detector and an alarm system. In some cases, this can drastically reduce your monthly home insurance rates.
Other options include building a gate around your property, and thus minimizing the chances of a thief or burglar entering the property in the first place. By speaking with your insurance agent, you can quickly learn the criteria that’s used to price policies and assess risk. Use this criteria to work with your insurance company, and delivery a home environment that’s low-risk to them.
Before you purchase your home, there are other ways to keep your homeowners insurance rates at a minimum. As homeowners insurance covers both the cost of damage, property theft, and costs from being unable to use your home, it’s best to look at homes in low-risk geographical areas. This could mean searching for homes that are far from fault lines, or in areas that rarely experience flooding.
In order to further minimize the risk of crime occurring at your home, and thus lower the costs of an insurance company reimbursing you for lost property, you can shave a significant margin from your insurance costs by purchasing a home in a low-crime area. In many cases, this will lower your home and contents insurance rates by as much as twenty percent – a direct response to lowered risks.
Finally, the most effective way to lower your homeowners insurance rates is to be a good insurance client. Pay your invoices on time, keep your claims to a minimum, and built trust with insurers – it’s a great way to lower your fees. Over time, the cost of your insurance will decrease progressively, at a fairly worthwhile pace. Insurance companies value trust, and it’s up to you to start building it.
Let’s quickly recap, to make sure you’re completely aware of the factors that influence homeowners insurance rates. There’s location – make sure your home is located far from natural disaster areas, is far from high-crime areas, and is cleared from the road. There’s crime – avoid it by using an alarm, a fence, and other objects. Finally, there’s trust – something you need to build independently.
All of these factors will influence your homeowners insurance rates. With a direct focus on fighting them, a long-term strategy for building trust, and the right personal outlook, you’ll be able to ensure your home is safe, secure, and free from risk, all at a generous discount from the usual homeowners insurance rates.