Finding Cheap Homeowners Insurance – A Few Practical Tips

You know the old saying, “Home, sweet home”? It’s a classic sentiment that expresses pleasure or relief upon returning to one’s home—especially after a prolonged absence.

Indeed, for most people, there’s no place like home—not only in terms of feelings, emotions, and attitudes, but even financially. It’s the largest single investment we will ever make in our lifetime.

After our families; our house, apartment, condo, or any other type of real estate, as well as its contents, is probably the most precious possession we have.

There’s a special bond between us and our physical place of residence. It can represent so many things: shelter from the elements, a place of refuge from the harsh outside world, and a sanctuary from life’s stresses.

It’s where we raise our kids and live with our family, and, as such, it’s the center of stability, comfort, and safety in our lives.

As you know, we live in a complex, dynamic, and unpredictable world, where accidents, criminal activity, and even natural disasters happen all the time. And the worst part of this reality is that these unexpected eventualities usually catch you when you least expect them.

So, how do we protect our assets against potential losses due to the unfortunate situations that we might face as homeowners, such as fire, theft, vandalism, falling objects, lightning, windstorms, hail, or other covered disasters?

This is where home insurance comes into the picture. The overall cost of your plan will depend on a number of factors, such as the property location type, value, age, condition, house materials, the cost to rebuild, policy type, coverage amount, number and type of pets, claims history, roof condition, and other criteria.

The installation of fire and theft preventive measures, as well as making a few home improvements (e.g., upgrading your roof, exterior windows, and shutters) will make your home safer and offer discounts that can keep your rates low.

Since each provider has their own processes and formulas to calculate risk, it’s essential to get multiple quotes, so you can make an informed comparison and get a better idea of who offers the cheapest packages.

Figuring out the right balance between cost and coverage is key to get a clear picture of your options and more money-saving opportunities, and finally to make a successful insurance purchase.

With a little forethought, risk analysis, prioritization, and careful planning, you can save a bundle on your monthly payments.

Whether you’re looking for a basic, dirt-cheap policy, a standard plan, or a premium solution with all the bells and whistles, you can bring your costs down significantly by using advanced home insurance search technology, coupled with smart shopping skills.

There is no universal recipe or “right” way to find the cheapest rate possible. However, here are a few practical tips that can help you buy homeowners insurance at a lower price:

1. Here’s an important word of caution: Wanting to find the best price for your plan is natural and totally understandable. However, be wary of unrealistically cheap insurance offers.
   
   They may not provide sufficient coverage in your time of need; they may require absurdly high deductibles; they may have a terribly slow claims process (often coupled with a disappointing payout); they may offer inferior or no customer service at all; or even worse—they may turn out to be a complete scam.
   
2. Obviously, the more coverage you purchase, the higher your premium will likely be.
   Take this principle under consideration as you decide which insurance features are must-haves, and which you can live without.
   
   Eliminating unnecessary coverage is a legitimate course of action. However, don’t sacrifice essential components, such as structural and personal belongings coverages, liability protection, and additional living expenses (ALE), just for the sake of getting a lower rate.
   
   Furthermore, if you need additional coverage due to your unique home, lifestyle, finances, or other needs, do not hesitate to take them, as well.
3. Avoid using shady “free quote” services, and dubious lead generation sites that do not compare different policies or quotes.
   Typically, these sites simply make money by selling your private information to online marketers and businesses in the insurance industry.
   
   Using such sites is a sure recipe for getting continuously bombarded with spam emails, text messages, and telemarketing phone calls.
   
4. Insurance companies give a variety of discounts that some consumers are not necessarily aware of.
   
   Such discounts are often given for things like installing safety and security devices (e.g., home security systems, strong locks, smoke detectors, or fire extinguishers), bundling additional policies with the same company (e.g., car insurance and life insurance), making automatic payments, living in a smoke-free home, or being claims-free.
   
5. Price is certainly an important factor when considering which company to use, but you must also consider the insurer’s financial stability, their ability to pay claims in a timely manner, their quality of coverage, and their level of customer service.
   
   Reputation is crucial in this business, so make sure that you choose a reliable carrier with a great track record whom you can truly depend on.
   Remember, a low-cost policy will not help you if you’re dealing with a bad company that has a terrible history of mistreating its customers.
6. Consider getting a plan with a higher deductible (i.e., the amount of money that you agree to pay out of pocket if you make a claim).
   Taking this step can lower your insurance premiums.
   
7. Remember, getting the best deal possible largely depends on your willingness to invest time and effort into getting multiple quotes from several home insurers for the same coverage, as well as comparing them and determining which offers the lowest price—or alternatively, the most value for your money.
   
8. Using home insurance aggregators is a great way to enjoy a simple, fast, and pain-free policy comparison and shopping experience.
   
   However, since each comparison service is unique and uses different technologies, algorithms, and methodologies, you may want to try several of them to get a broader perspective.
   
   In addition, not all insurance brands will necessarily be represented on all platforms, so if you want to be thorough, and you don’t want to miss any cheap, good opportunities, then don’t put all your eggs in one basket!
   
9. Ask for at least one quote from a reliable digital carrier that is licensed in your state and provides sufficient coverage options.
   
   In general, the goal of these direct insurance startups is to use technology and innovative business models (e.g., peer-to-peer or others) to simplify the policy buying process, increase pricing transparency, pay claims faster, and offer lower premiums.
   
   If you feel like you’re stuck with an old-fashioned legacy company, and you’re not satisfied with their claims-handling practices, or how much you pay each month, then consider switching to a strictly online insurer.
   You may discover that their policies are the most affordable solution for your financial needs.
   
10. Homeowners who live in areas that are less prone to natural disasters (e.g., floods or earthquakes) or crime can expect to pay significantly lower rates, compared to homeowners who live in high-risk areas.
11. Ask with your friends and family about their experience with individual homeowners insurance. Do they like their carrier? Use the information they share with you to either follow in their footsteps or avoid repeating the same mistakes.
12. Pay upfront if you can. Paying your whole premium upfront, rather than making payments over time, will add to your savings.
13. Coupon codes can help you save even more, so be sure to check the insurance comparison platform, as well as the specific brand’s official homepage, and any third-party coupon portals for active promo codes.