Buying property insurance for your new home is a necessary. A portion of your insurance premium may be due at closing as part of your closing costs, and you may need to continue making monthly premium payments going forward. In many cases, this premium is added to your mortgage payment and collected in an escrow account. Finding ways to save money on the premium while still getting quality coverage is important.
Take Care of Your Credit Score
Many people do not realize that their credit score affects their insurance rates. If your credit score is not where you would like it to be, take time to pay down debts and to improve your credit rating in other ways. A bonus is that these efforts can help you to qualify for a lower mortgage interest rate as well.
Compare Plans
After determining the types and amount of coverage that you want, take time to shop around. Request quotes for identical coverage so that you can easily see the savings. In addition to reviewing rates, pay attention to each company’s reputation and consumer reviews. The last thing that you want is to deal with an insurance company that has a poor claims process and bad customer service.
Look for Discounts
There are various property insurance policy discounts that are available through different insurance companies. A common discount is for bundling your home and automotive coverage together with the same provider. You may also get a discount for opening a savings account, buying personal property insurance and taking other steps. Some providers have discounts for seniors, veterans, properties with a security system and more. Some insurance companies have excellent customer retention policies and may offer discounts down the road if you have not filed a claim.
Taking time to find the best rate on home insurance today can pay off, but you should not assume that the deal you find today is always going to be the best one. Get in the habit of comparing rates annually so that you never overpay for quality coverage.
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