Rates for house/homeowners insurance differs widely between insurance companies and according to the amount of coverage. Rates also vary considerably from state to state, between different cities in the same state, and even between neighborhoods in the same city. Individuals looking for the cheapest house/homeowners insurance are well-advised and to shop around and compare quotes to get the best deal in terms of price and coverage provided.
Cheap House Insurance
Homeowners Insurance Coverage and Cost Factors
There are many choices in terms of coverage options for individuals to consider, all of which impact the insurance premium cost. Add-ons such as loss of use or guest medical coverage can significantly increase premiums.
Coverage choices have to be made on an individual basis. These three homeowners insurance companies typically offer the lowest rates and the best value coverage for the price.
Amica Mutual Insurance Company
Amica is consistently ranked as one of the cheapest providers of homeowners insurance and carries the additional benefit of high customer satisfaction ratings. It was also rated number one by J.D. Power’s U.S. Household Insurance study in 2016. Some of Amica’s cost savings may derive from the fact that it deals strictly through company representatives.
The minor negative for Amica is that it doesn’t match some of its competitors in regard to common discounts offered, such as a discount for having deadbolt locks. Nonetheless, Amica generally comes out best in terms of the lowest cost and overall price for value.
Allstate Corporation
It offers an extensive list of potential discounts that can significantly lower the cost of house/homeowners insurance coverage. The various possible discounts available include discounts for putting in an alarm system or installing deadbolts, bundling with other insurance coverage, setting up automatic premium payments, making renovations, and there’s even a discount for being a new Allstate customer.
Erie Insurance Group
Erie Insurance Group doesn’t have the same level of name recognition as Allstate, and it is only available in a limited number of U.S. states, but it gets very high marks for the affordability and value of its homeowner’s insurance. In 2016, Erie was ranked third for its billing process and policy information, interaction and policy offerings by J.D. Power.
Tips for Saving on Homeowners Insurance
Careful shopping for homeowners’ insurance coverage usually yields sizable savings. With free online coverage quotes available through numerous insurance websites, it is relatively quick and easy for consumers to comparison shop for the lowest rates on comparable coverage levels. Find savings in cheap home insurance by making sure to get the proper amount of coverage, but avoid paying for unnecessary coverage.
Ways to Find Cheap Home Insurance
Many factors influence one’s home insurance rates. The most obvious include your home’s location, age, and construction type. Newer homes in areas with low risk of natural disasters or crime are the cheapest to insure. But there are still several strategies one can use to reduce his/her home/house insurance bill:
#1: Shop around
Just like anything else, one needs to shop around to find the cheapest home insurance. Online quote tools can help save a lot of time over calling individual insurers, and some even allow one to compare quotes from several companies at once
#2: Don’t over-insure
It is important to always remember to insure for what it would cost to rebuild one’s home, not to repurchase it. This is an important distinction because market value takes into account the location of one’s home and the value of his/her land.
When it comes to personal property, experts emphasize the importance of taking a home inventory to determine the value of one’s belongings.
#3: Bundle all policies
The individual’s insurer would love to have all of the person’s business. It’s worth checking to see whether he/she will get a discount for having multiple policies — for instance, home, auto, and life — with the same company.
#4: Consider a higher deductible
As with most types of insurance, the higher the deductible, the lower the monthly bill. When one makes a claim, his/her deductible is the amount he/she agrees to pay the insurance company before his/her coverage kicks in. Going as high as the individual can comfortably afford in the event of a claim can mean major savings.
#5: Rethink certain risky choices
You can’t move your home out of tornado alley or a crime-ridden city, but you can rethink certain things insurance companies frown upon:
Swimming pools: If you’re dreaming about adding a swimming pool, think again. It will almost certainly boost your bill because of injury and drowning risks.
#6: Add safety features
Standard safety features such as deadbolts, smoke detectors, carbon monoxide detectors, and fire extinguishers may earn one a small discount. A security system can let one save even more, depending on the individual’s insurer.
CONCLUSION
If one’s home is in a disaster-prone area, check on special modifications he/she can make to further reduce his/her premiums. Adding features such as storm shutters, storm-resistant garage doors, stronger roofs, and shatter-proof windows can help you save, too.