Afford a Better Mortgage with Cheaper Insurance

We hear about it day in and day out in the news—America is in a mortgage crisis. More and more Americans are feeling the crunch as they struggle to keep up with their mortgage payments. Foreclosure, a once rare event, is a common occurrence these days. In fact, there were over 150,000 foreclosures in June of 2007, which is an 87% increase from June of the prior year. To avoid foreclosure, many homeowners are making small adjustments to try to save money in every way possible. For homeowners who are really in danger, drastic cutbacks have to be made, on necessities as well as luxuries. One way to relieve some of the pressure from the mortgage crisis is to compare home insurance quotes. We’ll tell you how a cheaper home insurance policy can lead to real savings.

Home Insurance & Mortgages

Some new home buyers may have seen their home insurance policy as a package deal with their mortgage. Lenders usually require that you pay the first year’s premium upon closing on your loan, and shopping around for the policy with the best value may not have been a feasible option at the time. However, with the financial crisis now facing homeowners, now is as good a time as ever to shop around for a new policy. Shopping for home insurance has never been easier, thanks to the Internet, and there are a plethora of ways for you to save on your policy.

• Think about raising your deductibles. Raising your deductibles by just a few hundred dollars can make a huge difference in your premiums. If you increase your deductible from $500 to $1000, for example, you could save up to 25% on your premiums.
• Take advantage of the multiple-policy discount. Most insurers offer many different types of policies aside from home insurance. If you have one of these insurers, you will probably qualify for substantial discounts if you buy more than one policy with the same company. For instance, you might save up to 15% on your premiums by getting your auto insurance and home insurance from the same company.
• Don’t buy more coverage than you need. Any time you make any major purchases or additions/renovations to your home, you should update your policy. On the other hand, you also need to update your policy as your personal belongings depreciate in value (if you have actual cash value coverage). Update your home inventory regularly and don’t spend money on unnecessary coverage. For example, if you don’t live on a flood plain, you probably don’t need flood insurance.
• Ask about discounts. Most homeowners are unaware of all the discounts available to them. The majority of insurers offer discounts if your house is equipped with features like a smoke detector, alarm system, deadbolts, and other safety devices.

Additional Resources

• 12 Ways to Save on Home Insurance
• Save Big on Your Homeowners Policy

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