Tips to Save on Your Homeowner's Insurance

GettyImages-1260517863_LR Home insurance premiums can make up a big chunk of the annual expenses of a family. Insurance rates change every year, and in many cases the premiums go up. We all know that there are several variables that determine which banks will lend us money, how much insurance companies will charge us for coverage, and what qualifies a buyer. There are four main variables that may affect your home insurance rate:

Natural Disaster Likelihood
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The good news is that there are ways in which you can optimize your insurance policy and get the most for the premium you are paying.

Opt for a Higher Deductible
Deductible is the money you have to shell out from your pocket before the insurance policy kicks in. The higher deductible you have, the lower your monthly payment should be. This means if something happens, you will have to pay more out of pocket. But with lower monthly payments, you can build up a savings as a back up plan.
More Claims, Higher Premium
Insurance companies take into account your claim history while determining your premium. The more claims you have filed recently on your home, the higher your insurance rates shoot up. We recommend refraining from filing a claim if the risk of incurring a rate hike far outweighs the immediate benefits of the payout you get.
Keep Your Credit Reports Clean
Your credit score may affect your insurance cost. Ask your insurance provider whether your score has any effect on your premiums. You may be able to bring your score up in a short time with some fairly simple fixes.
Shop Around
As with any purchase, take time to price shop. Checking with your current insurance company is a great place to start. Do not renew your policy on auto mode every year. Read through the terms and conditions, and evaluate your cost. Ask your friends and colleagues, read up financial articles, or seek the services of an independent insurance agent. If you know the going rate for insurance, you should be able to get the best rate.

Additionally, ask about discounts. You may get a discount based on your neighborhood, or through a membership you have. Safety discounts may apply. You don’t know until you ask.
Bundle Policies
One thing a first time home buyer can do is bundle insurance policies. If you have a car, you most likely have it insured and a lot of people have life insurance too. Check with your current insurance company for homeowners' insurance, to see if keeping the policies together will save a few bucks.

So as you look at houses, keep in mind you may need to roll homeowners insurance into your payment. There are many ways out there by which you can save on your homeowners insurance. Do your research, be educated and buy yourself the most suited and adequate policy. Let us know how we can help!

Tips to Save on Your Homeowner's Insurance

Home insurance premiums can make up a big chunk of the annual expenses of a family. Insurance rates change every year, and in many cases the premiums go up. We all know that there are several variables that determine which banks will lend us money, how much insurance companies will charge us for coverage, and what qualifies a buyer. There are four main variables that may affect your home insurance rate:

Home Maintenance Tips for Winter

Sure, spring cleaning sounds great. However, in reality, tackling a long home maintenance checklist all at once can be overwhelming. Rather than letting it all add up, what if you tackled home maintenance a little each season? Here are some ideas for taking care of your home during the winter months.

Tips for Paying Off Your Mortgage Faster

There are several ways to pay off your mortgage faster and save on interest payments. Even better, not all methods require spending a lot of extra money! Take a look at the list below: Make extra principal payments. You can pay extra money toward your mortgage balance each month or make a larger, lump sum payment on your principal each year. This reduces the amount due on the mortgage as well as reducing the amount of interest that will accrue. Extra money can also be added to the principal payment from bonuses, gifts, savings and extra earnings. Just remember to make a note on the check for the money to go towards the principal! Make one extra mortgage payment per year. One of the easiest ways to make an extra payment each year is to pay half your mortgage payment every other week instead of paying the full amount once a month, otherwise known as “bi-weekly payments.” With these payments, an extra payment is made so that the total number of payments that one makes adds up to 13 payments in a year rather than the 12 that would have been made with monthly payments. This adds up to significant interest savings over the duration of a mortgage. You also want to make sure that if your lender accepts this kind of payment they will not charge you a prepayment penalty. Also verify that the bi-weekly payments are being applied to the principal amount and not the interest. Otherwise, you won't notice the savings. Reduce your balance with a lump-sum payment. Have you inherited money, earned a bonus or commission, or sold a large item? You could apply that amount to your mortgage’s principal balance. Another option is any time you have a month where you have that third paycheck, apply that to the principal on your mortgage. This will happen twice a year, adding an extra principal payment to your mortgage loan. While paying down a large debt is nice, it's not a requirement. Consider making sure you have enough to work toward other financial goals, such as an emergency fund, before paying more on your mortgage. However, there are many options you can explore that best fit your budget. You can learn more about buying your first home with our Get Mortgage Ready Guide below.