With interest rates on credit cards and bank loans topping 25 percent for consumers with low credit scores, it’s essential that homeowners compare home insurance policies to maintain and even improve their credit ratings. The reason for this is that credit ratings are partially based on regularity of timely payments, and consumers who always pay their bills on time see that reflected in higher credit scores. It follows that if consumers compare homeowners insurance rates to find the most affordable deals that offer adequate coverage, they’re more likely to be able to pay all of their premiums on time. This in turn will help drive up their credit scores.
How to Compare Home Insurance Policies
When you compare home insurance policies, it’s essential to not only compare homeowners insurance rates, but also the specifics of the policies themselves. Because no matter how low your monthly premium, if you don’t have adequate coverage when disaster strikes, you’ll be much more out of pocket than you would be paying higher premiums. So before you compare rates, make a list of what you’d like included in your policy, focusing on such things as personal property or valuables, hurricane damage, homeowners liability, and flood insurance. This will help you determine whether you need additional coverage beyond your basic homeowners policy.
Of course, the more coverage you have, the higher your insurance rates. But that’s not the only thing that influences your premiums. Think of things such as how many people live in your home, or whether your home is equipped with a home security system, what type of locks, windows, and even roof you have. Be meticulous in writing down every aspect that could result in lower rates. Did your teenager recently move out, but you haven’t notified your current insurance company yet? Could you reduce your rates by simply replacing the locks on your exterior doors?
Once you have the details in front of you, it’s time to compare home insurance policies. Get a copy of your current policy, and go to an insurance comparison website such as AgentInsure to get multiple quotes from trustworthy insurance companies. You’ll be prompted to fill out your information, which will be processed only in order to give you accurate quotes for your region. You’ll receive up to five quotes within minutes of submitting the form, and you can take as long as you like to review them.
When comparing the quotes, be sure to pay attention to the requirements you listed earlier. The coverage limits will depend on the repair and replacement value of your home, as well as your mortgage lender’s requirements. If you want to raise the limits, contact the insurance companies to discuss how this will affect your quotes.
When you’ve found a good policy at a price you can easily afford, purchase it. For the best effects on your credit score, schedule automatic payments so you’re always on time.
My House is Paid Off - Do I still need Homeowners Insurance?
As a homeowner, you probably had to initially get your homeowners insurance policy as a requirement when you got your mortgage. This is because the lender had a lien on the home, meaning that the l...
Read More →
What is Recommended to do in Order to Protect my Assets if I am Sued?
If you are being sued due to an auto accident or an accident that takes place in your home, then it is important to know what you need to protect your assets. By taking action to keep your personal...
Read More →
What do I Need to do if my Home Insurance Claim was Denied?
When you file a homeowners insurance claim, it is possible that the insurer will deny the claim for various reasons. Before you assume that your policy does not cover the damage due to the denial, ...
Read More →