There are plenty of obvious ways for financially savvy homeowners to keep their insurance rates low, but that's not where the possibilities end. Frustratingly, a lot of the factors that are used by insurance providers to calculate rates are already decided once you own your home. Once you have shopped for the lowest homeowners insurance rates and chosen a deductible that you can comfortably afford, you can take a look at these four largely unknown tips for getting an even steeper discount.
1. Rehab Your Credit File
For the most part, home insurance companies don't consider homeowners' credit ratings as a primary factor when coming up with rates. However, consumers with higher credit scores and more positive credit histories are routinely rewarded with cheaper premiums and lower deductibles. You may be surprised by how quickly you can increase your credit score, and as a result, your homeowners insurance premiums by paying closer attention to your credit file. As soon as you know that your credit rating has improved, you can start to compare rates and see a difference.
2. Reinforce Your Home
Homeowners insurance companies give their customers varying rates, one factor being how safe they deem a home to be. Making a small improvement such as installing a security system may yield you a break on your homeowners insurance company. Security fences help to deter robbers and vandals, often resulting in better premiums from home insurance providers. A video monitoring system is also something you can consider if you are interested in a lower insurance rate.
3. Bundle Insurance Products
When you take a home insurance policy and put it together with auto coverage or life insurance, what you get is a customized insurance bundle. Bundled insurance products don't just offer you lower insurance rates; you also have the convenience of paying all of your insurance premiums at the same time and place. Small discounts across multiple insurance products can really add up when premiums become due.
4. Mitigate Your Losses
Another factor that insurance companies consider when setting rates is claims history. Homeowners insurance is around so that responsible property owners can put in claims when necessary, but submitting even a single claim can impact insurance premiums. For this reason, you really need to think twice before submitting a homeowners insurance claim. It may be better for you to pay for small repairs out of pocket now than to pay a higher cost for home insurance in the future.