Cheap Rates for Home Insurance

When we buy a home it is with the intent to set down roots and build wealth. Contrary to the act of growing our nest egg is outgoing cash flow. In order to counteract this it is crucial that we reduce unnecessary expenses, which is why it is so important to know where to find cheap insurance for your home.

In this process, we will differentiate getting the best deal (which will be discussed in detail) as well as getting the wrong policy. The former will maintain the coverage and protection you need while the latter will save you a bit of money today but cost you terribly later.

Be sure to use the FREE insurance comparison tool above!

The Steps to Getting the Best Homeowners Policy

Finding cheaper insurance is just a matter of following a simple process. By utilizing these steps you may be surprised at the savings that are available. Most impressive of all is the fact that none of the steps require much effort or time.

• Ask your current agent for a break
• Go on the Internet to get many quotes from a broker
• Understand the difference between being smart and being cheap

For more detail on these, check out the information below.

Ask Your Current Agent for a Break

It might sound crazy but you may qualify for a discount without having to do anything, and your broker can just click a button or submit a piece of paperwork to get it for you. You just have to ask.

The discount could be for having multiple policies or other products – such as retirement savings, life, health, dental, etc. – reaching a certain age, driving less than you used to.

There are many reasons that you may deserve a break on your rate, but if you don’t speak with your agent, then he or she will not be able to help you, and this is because unless you live with that person, there is no way for him or her to know that you have had some of these changes.

For example, let us say that you work in a field where you travel frequently. In the past you have driven 20,000+ miles a year, putting you at greater risk for accidents (after all, it is not if you get into one, but when). Additionally, you have gotten a few tickets in your time.

However, a recent change to your business model has resulted in you not having to leave home to do the work you excel at. The change has resulted in you driving not 20,000 miles, but 6,000. When you call your agent to note this big difference, you will find that your rate will drop accordingly.

While that is all well and fine for auto coverage, what about your home? Well, with the change in your working schedule you found that you no longer needed the small apartment that you maintained in that other city. This means that you no longer need that renter’s coverage, or rider, on your policy. This can easily save $100-200 per year.

Now, it would be great if your agent made this connection, but it would be impossible unless the two of you were very close. Also, while he or she does care about making sure you are taken care of, no one is going to care more about your personal finances than you, which is exactly why you need to be the first one to do this, and fast.

Once your agent has given you the feedback regarding your discount request, you should also go online and see what else is out there.

This can all be done in one place via a broker.

Go on the Internet to get Many Quotes From a Broker

What is a broker? If you ask Robert Kiyosaki, author of many fictional books disguised as real stories about real estate and business deals he has never engaged in, he would say that a broker makes you broker, and is broker than you. This is cute, and not always untrue, but in real life a broker can be very helpful.

A broker is a sales agent who has access to many different brands.

For example, if you wanted a homeowners policy, a broker would be able to get quotes from a wide variety of companies, allowing you to not only choose the policy you like, but also the brand you prefer. This is in contrast to using a captive agent, who only works for one company.

When you go online the information is readily available and literally at your fingertips. You can simply Google insurance broker, and you will be led to a number of options, including, naturally, the Wikipedia page explaining what one is.

From there you can go to a site, or two, or three, and begin your search. When you get the results you are looking for you will either find that you got:

• The best rate
• A fair rate
• Ripped off

If you got the best rate, then that’s the best, because then you don’t have to do anything. In fact, you can ask for another $5 off for the heck of it so as to keep another latte in your pocket. After all, the worst he or she can say is “no.”

If you are getting a fair rate, then that’s ammunition you can use, suggesting that if your discounted rate merely pulls you into the realm of what you can pay elsewhere, then your discount would reasonably get you a better deal at that place.

And, lastly, if you’re getting ripped off, then if might be time to sever the relationship. You can also confront your agent, but there’s no need unless it is a close friend or relative.

It could be an honest mistake, but if this is a seasoned professional, then the odds are they’ve been padding their lives with client money, and you deserve better than that.

Understand the Difference Between Being Smart and Being Cheap

Now, the title of this article is to find “cheap” insurance, but that’s not really what you want. You want the lowest price for what you need. However, let’s clarify the difference.

Cheap insurance is substandard, just like cheap people. Thrifty insurance is a policy that is not wasteful.

Just as people who are careful not to waste are also careful not to neglect the important things, those who are cheap forgo what is important just to save a buck.

What we find is that being cheap is actually very costly.

Why Being Cheap is so Expensive

Flood insurance costs the typical household a few hundred dollars per year. It is paid separately – in most cases – from the escrow, so it always feels like an added expense.

However, many families on the south shore of Long Island realized that the years they had saved a few thousand dollars on this expense led to them being on the hook for hundreds of thousands of dollars when their properties were completely destroyed.

Not getting flood insurance so as to save a few dollars each year led to the many people losing the homes they raised their children in.

As the tidal surge came, many realized the hard way that a once-in-a-lifetime event does come at least once in our lifetimes. The bottom line is that you need to have flood insurance.

By following these steps you will be better able to save money while being thrifty. The alternative is to be wasteful, which is exactly what you want to avoid doing.

Use the FREE comparison quote tool at the bottom of the page!

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