Homeowners Insurance - 7 Tips to Avoid Mistakes before Buying Your policy- part 1 of 2

By Adams Bridges

Homeowners insurance is the most important way to protect your most valuable assets. Before you buy your insurance policy, bear in mind these seven tips to avoid wasting your money. In this article I refer to the most common mistakes the insurance buyers make while they buy their first policy. By avoiding these mistakes you can save a hundred of dollars and decreasing your premium

1- Shop around to avoid overpaying for your homeowners insurance policy

Your mortgage lender recommends that you buy a policy from certain homeowners insurance provider. In this case you will lose a good chance to save a hundreds of dollars, by missing the advantage of shopping around. This is due to the fact that insurance rates vary from company to another. Instead of wasting your valuable time shopping for a low-price grocery, spend more time to find an affordable homeowners insurance policy. Your friends are good information source of low-rates providers. And it's a good idea to get online quotes to find your best deal.

2- Don't buy homeowners insurance policy without double checking the provider reputation

A lot of homeowners insurance companies compete in homeowners insurance market. And you should choose the most reputable and suitable company for your unique needs. That's easy now and thanks to companies rating web sites like 'ambest.com' this site provides homeowners with reliable information about insurance companies. Another site 'Standardandpoors.com' compares the companies on the basis of their response to your claim. You can also check any company reputation from 'NAIC.com' or check their complaint levels from your state department of insurance.

3- homeowners insurance is only for the home structure don't insure the land.

Don't miscalculate how much your home need to be precisely insured. By adding the value of the land to the total amount of your homeowners insurance your rate will be raised. While large portion of what you pay to purchase your house is the cost of the land which will be intact even if your house destroyed completely. So there is no need to raise your insurance rate by including the land under your home insurance coverage.

4- Ask your agent about discounts don't miss this chance to save a lot of money

All homeowners insurance providers offer discounts on the premium to attract more customers to their business. It's a good opportunity to benefit from these discounts and save up to 10 percent of your premium by fixing safety appliances like burglar alarms, window locks, smoke detectors, fire sprinklers in your dwelling. There is a senior citizen discount for 55 years old homeowners because they spend more time in home their houses are in low risk. Don't forget to ask your agent about multi-policy discount in case you sign up for car insurance from the same company too. Keep asking your agent until you know all the discounts you are eligible for.