A house is where a person makes his life. It is the most precious and also the most expensive thing he has. So naturally, it is a smart move to insure the house to safeguard it from any kind of accidents. However, the problem often lies with the premium that one has to pay in order to insure it. Often, the amount is so high that when it adds up to the maintenance and the mortgage payments, people back down from buying a policy. Luckily nowadays, there are various companies that offer cheap home insurance policies as well as cheap renters insurance
.Insurance companies has expanded their range of business of the recent years. They are now moving towards new grounds like cheap renters insurance or even uber insurance for the drivers! As a result of this move, these companies are now offering attractive benefits and low premiums for your house.
The premium of a policy depends on various factors. Here are a few:
A) The first but unfortunately the unchangeable aspect that determines the premium you would need to pay is the neighborhood you live in. The location of your house is of paramount importance. If the area has a high crime rate, then the premium will also be very high. If you have already bought a house, then you can not change the location. But if you are thinking about buying one, do so in a peaceful neighborhood. Otherwise, you may have to pay an exceedingly high premium.
B) Insurance companies will definitely look into your credit score before offering you a quote or a policy. It is their way of ensuring the safety of their company. With a good credit score, you can show them that you will be able to pay your premium in time.
C) Then comes the condition of your house itself. If it is secured, then the premium will be low. By installing a good security system like double-penned windows, alarm system, anti-burglary system, you can reduce the amount of money you have to pay as premium. However, the amount defers from one company to another.
D) Location of public emergency services like fire stations, police stations, fire hydrant etc also has an impact on the premium. If the location of these offices are near to your house, the security of your home is considered as high. So in turn, the premium would be low as any kind of security concern will be then nipped in bud.
E) Deductibles are also important. A high deductible results in a low premium. So you must look into that even before buying a policy.
F) Multi-policy discount is something that most insurance companies will tell you to opt to, and it is good advice. If you want to buy policies that covers more than one aspect of your life, you should consider buying them from the same insurer. In most cases, they will offer you lucrative deals and you will save a lot of money on each of your policies.