Just like any other financial move, getting the best rates when buying homeowners insurance takes a little bit of preparation.
You didn't just dive right in and buy the first house that you saw.
You took the time to see many options and weigh the financial aspects of making such a big investment.
Therefore, securing that investment with a good home insurance policy should be done with the same amount of care and preparation.
Before applying for coverage, take these three steps.
1) Maximize your credit score.
If you financed your home, like most of us have, you probably already have done this.
However, if you've been owned your home for a while and are just looking to secure new insurance for it, maybe your credit rating has declined since you purchased it.
All homeowner insurance companies are now offering great discounts for those who have credit scores of 740 or higher.
Take the necessary steps to raise your score to this level before buying your policy.
2) Protect your home.
Do these like installing an alarm system and surveillance cameras to make the possibility of your home being burglarized less.
Install smoke detectors and, if you can afford it, a sprinkler system to make your home safer from fire damage.
Also, take the necessary steps to build up your home and make it strong and safe from potential natural disasters.
3) Find out what the true value of your home is.
If you have the ability to choose the coverage amount for your home without a lender's requirements, make sure to find out what the true value of the home is.
Remember, if your home is destroyed, the amount of money you will need to collect from the insurance company is the amount that it will take to rebuild your home.
In many cases, this amount is less than the appraised value of the home.