How to Avoid Paying More Than You Need to For Home Insurance

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Buying a home is expensive enough as it is without throwing unnecessary expenses into the mix. Unfortunately, some homeowners are paying much more than they need to for home insurance. Hidden insurance costs can cost you anywhere from $50 and up each month, and these costs need to be eliminated as soon as possible. Homeowners also have a habit of insuring their home with their car insurance provider without finding out if that’s really the best rate or not. Here are a few ways to avoid paying more than you need to for home insurance.

Shop Around

Both new and current homeowners need to shop around when it comes to home insurance. Whether you’re buying a home and are in search of a new policy or if you have a policy and just want to save some money, getting quotes from several companies can show you how much you can save. The costs can vary by as much as a couple hundred dollars each year, and that’s a significant amount of money to just throw away.

homeowners-insurance

Eliminate PMI

The most common way homeowners pay more than they need to is with private mortgage insurance (PMI). This, too can cost homeowners anywhere from $50 – $200. What is private mortgage insurance? It’s an insurance policy that your lender requires you to pay for because it partially reimburses them if you default on your mortgage. Whether you are required to pay this is determined by your loan to value ratio. The ratio is calculated by dividing your mortgage by your home’s current value. If this ratio is more than 80 percent, you must pay PMI. To avoid this charge, pay a greater down payment when purchasing a new home. If you’re already living in the home, pay more toward the principle each month until you have more equity in your home. By eliminating this extra home insurance expense, you can save a significant amount of money on your home loan.

Improve Your Credit Rating

Homeowners who want to save money on home insurance need to check out sites like http://insuranceprofy.com/ to find the best quotes. The quotes given take into consideration several things: the value of your home, the value of the contents inside your home and your credit rating. Like other types of insurance products, the better your credit rating, the better your insurance rates will be. To improve your rating, pay your bills on time and keep your credit usage to a small percentage of your credit limits. Avoid getting many credit cards or having excessive credit limits.

These are three of the easiest ways to save a little money on your home insurance. The most important thing to remember is not to skimp on coverage. Your home is your largest investment and should be well protected in case of a disaster such as a fire, flood, storm or theft. You don’t have to compromise coverage to save a few dollars; the goal is to find affordable coverage that gives you the greatest amount of protection for your money.

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James is a financial expert who has contributed several business and finance related articles. His expertise and first-hand knowledge of economics makes his blogs and articles informative and helpful for those looking out for guidance and assistance in matters related to finance. He has an active schedule of TV and radio interviews He is co-host of the popular VT Radio show Jim and Gordie Show. latest-articles-buttonJim comes from an old military family dating back to the American Revolution. Dozens of Confederate ancestors fought for the South in the War Between the States. Uncles fought in WWII and Korea. His father was a WWII P-40 and later P-51 Mustang fighter pilot. Vietnam found several uncles serving, a cousin, and brother Wendell as a young Ranger officer. His mother was a WWII widow at 16, her first husband killed with all 580 aboard when the SS Paul Hamilton, an ammunition ship with 7000 tons of explosives aboard, was torpedoed off the coast of Algiers. He has been writing, speaking and doing public relations, television, consulting and now multimedia work for a variety of American heritage, historical, military, veterans and Intel platforms. Jim’s only film appearance was in the PBS Looking for Lincoln documentary with Prof. Henry Lewis Gates, and he has guest lectured at the Army Command and General Staff School at Fort Gordon. Currently he is working to take his extensive historical video archives on line to assist his affiliated organizations with their website multimedia efforts, such as the Military Order of World Wars, Atlanta, Sons of the American Revolution, Sons of Confederate Veterans , Assoc. for Intelligence Officers, the Navy League, Georgia Heritage Council, National Memorial Assoc.of Georgia.

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