Cheap House Insurance – How to Get the Best Coverage for the Lowest Price

Article by David Patullo

Getting cheap house insurance involves many factors. By evaluating different companies, knowing the level of protection you need, and assessing your personal risk factors, you can get cheap house insurance with the best coverage rates for you. The only way to know exactly what rates you’ll get is to shop around between companies, whether you’re moving or just renewing your policy.Knowing what property and/or contents you need insured can allow you to get cheap house insurance by eliminating unnecessary coverages. Risk is the overall liability assumed by the insurance company when they insure you.

Different companies will offer different levels of protection at different rates, period. Some companies have multi-policy discounts that go into effect when you insure multiple things. For example; Your RV, home, automobile, and term life insurance. Go out and get quotes of multiple companies’ rates to get competitive pricing. Companies put a large emphasis on your personal credit score(s) when determining how much to charge you. This is one of the several risk factors; This brings us, now, to risk.

Cost will vary the most in accordance to your personal and property risk factors. The items, which you own, that tell the insurance company what kind of lifestyle you live; Home items, automobiles, technology, they all factor into the risk level. Environmental factors which include, but are not limited to, floods, earthquakes, fires, hurricanes, and tornado’s have a great impact on your potential risk. These are things to consider when moving into a new house, but not much can be done when renewing your policy, as few people are willing to move just to get cheaper insurance. What is the crime rate where you live? The burglary rate? Theft? These are things the insurance companies will look at when evaluating your risk, and are obstacles to getting cheap house insurance. There are ways to lower your potential risk factors when shopping for coverage. Security alarms, deadbolts, fire retardant furniture, roof materials, and structural materials can lower your insurance costs. For example, brick houses won’t burn nearly as badly as wood homes.Of course, the security devices are obvious ways to reduce burglary risk, thus reducing your liability to need reimbursement from the insurance company.

Shopping for cheap house insurance is shopping around many factors. Some of these factors can be controlled and many cannot. It’s essential to lower your controllable risk factors when shopping for the best rates to get cheap house insurance. Do not forget about possible discounts among various insurance companies. If you are evaluated and assumed to pose low risk liability then your rates will be cheaper. They know if you are reliable based on yourcredit score(s). They will charge you less, on average, per policy, when owning multiple policies within a single insurance company (multiple-policy discounts). Home renovations can also land you discounts by allowing you to meet certain safety and risk criteria. I.E., Hardy roofing materials, security alarms, fences.

Never forget to assess what coverage you need! Paying for coverage you don’t need is a sure way to pay too much. Structural coverage will cover all your land, buildings, and your home; This is the most important and unavoidable coverage,the base rate. Liability coverage will insure you against personal financial responsibilities. For example, an animal attack occurs in your yard and you get sued, the liability coverage will cover your court fees. Contents coverage insures your personal belongings and can really drive up your rates, dependent on the level of value the insurance company deems your belongings have. Finally, income coverage will insure the properties you receive income from: buildings you rent, run a business from within, etc. are considered income properties.

Remember to compare companies, assess and control risk, and know your protection needs. These factors will ensure you get cheap house insurance.

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Where to find cheap house insurance

Article by David Thomson

Good news for the consumer is that a keenly competitive market has made available a wide range of cheap house insurance. As with any consumer goods or services, however, it is important to remember that cheap does not necessarily mean the best. Probably a better yardstick, when choosing house insurance, is to look for good value for money rather than a cheap product that might let you down when you most need it.

That said, home insurance • ” which will include both buildings and contents insurance • ” is inherently cheap when set against the value of the assets it protects. The home is most people’s single biggest investment, after all, and protection against the ever-present risks of fire, flooding, subsidence or storm damage make it more than sensible an asset to protect. Indeed, if a mortgage is involved, then the mortgage lender will insist on the insurance of the fabric of the house itself (i.e. buildings insurance) as a condition of advancing the mortgage.

Although the lender will insist on buildings insurance being in place, this does not mean that you have to buy the house insurance from the bank or building society advancing the loan. In fact, if you are looking for cheap house insurance you will probably find that the lender’s product is more expensive • ” since they will also be taking a commission on its sale • ” than standalone house insurance from a reputable, independent insurance provider. This is where an independent insurance broker’s advice can also prove extremely useful in matching your precise needs to the best • ” and cheapest • ” of the competing products available.

Some homeowners will discover to their bitter cost the perils of buying cheap house insurance by deflating the premiums they need to pay as a result of under-valuing the house itself. There is no short-circuiting the fact that house insurance must be based on the cost of completely rebuilding the property in the event of a disaster. This insured sum will be the total amount that the insurer will be prepared to pay against any claim. The effect of this, in the event of the very worst happening, therefore, is that if you have under-valued the property, there will not be adequate compensation to have it rebuilt. More than this, the insured sum will also determine the amount paid against lesser claims. These will be decided by the insurer on the basis of a proportion of the total sum insured. If the property is under-insured, therefore, the result of any claim will also be disappointingly inadequate.

The best way of ensuring that you obtain cheap house insurance is by helping yourself and the insurer by mitigating the risks to the property. Guard against theft, for example, by fitting security alarms, upgrading all locks, installing timer-controlled lighting and joining your local neighbourhood watch. Fit • ” and properly maintain • ” smoke alarms. Consider increasing the compulsory excess written into your policy by taking on an additional voluntary excess. Claims-free policy holders are, of course, insurers’ favourite types of customer. Some companies will recognise as much by offering no claims discounts of up to 20%, thus bringing cheap house insurance within the grasp of even more home owners.

About the Author

David Thomson is Chief Executive of BestDealInsurance an independent specialist broker dedicated to providing their clients with the best insurance deal on their home insurance, car and life insurance.