How Can You Lower Homeowners Insurance Rates?

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Did you know that, according to CNN, the average funeral costs $10,000, and Fox reports that, in 2010, the average car insurance claim was as high as $23,450? You never know when the tragedy will strike. Even worse, the best insurance websites reveal that insurance, whether life, homeowners, or auto insurance, contains a number of hidden costs, including closing fees, steadily increasing premiums, and more. What can consumers do to get the best insurance rates, especially when it comes to home insurance? What are the right questions to ask before getting insurance?

What Will My Plan Cover?

Did you know that some real estate companies will not process mortgage loans without some home insurance coverage? The best homeowners insurance tips start with the basics, or with finding on just how much a particular insurance plan is likely to cover. Most policies will cover damage to property and possessions owing to certain natural disasters, theft, vandalism, and fire. If, in the event of a fire or natural disaster, your home is temporarily unfit to live in, popular policies will also cover hotel and temporary living costs, too.

How Can I Reduce Costs?

Looking for home insurance tips? Insurance magazines may, or may not, be realistic about insurance costs. When it comes to home insurance, there are many viable ways to reduce premiums, and get more reasonable rates. What are some steps homeowners can take to lower premiums and insurance rates? reveals that burglar systems reduce rates by as much as 15-20%, and even a simple deadbolt can cut costs by an average of 5%.

What Costs Can I Expect?

Homeowners need to know what to expect, before tackling home insurance costs. Closing costs average about 2-5% of final costs, but they can range anywhere from 1-8%. According to a 2013 Bankrate survey closing costs are higher than ever, with an average increase of 8.4%, just among origination fees. One of the best ways to get a realistic estimate, especially with increasing costs, is to take advantage of good faith estimates (GFE). By law, mortgage companies need to release good faith estimates. Use GFEs to comparison shop for the best rates.

The best home insurance tips involve knowing what plans cover, reducing primarily costs, and having a realistic estimate of final costs, including closing costs and hidden fees.

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