Anyone that wants to own a home is not legally required to get home insurance, but most people will for two reasons. The first is that it’s a reasonable safety precaution that provides a little financial peace of mind.
However, perhaps more importantly, unless there’s no need to get a mortgage, few banks will approve a loan without the assurance that comes from knowing a potential homebuyer is serious enough about ownership to take this precautionary measure.
Homeownership has become more critical than ever, especially in the era of COVID-19, when renting becomes less certain due to precarious employment and even landlords’ temperament. But suppose you’re a homeowner and paying home insurance. In that case, there are things you can do to stretch your monthly expenses and lower your premiums in California.
It’s a basic tactic but also essential in the early stages for getting the best results. Different insurance companies will offer different rates, so you can get lower premiums right off the bat by comparing at least three other insurers and seeing how their rates differ.
Suppose you’re already with a particular insurer for other areas, such as car insurance. In that case, you may get a discount going with them. This is a similar enticement practice to how cable companies offer lower rates for people that subscribe to their television, internet, and telephone services.
Premiums are determined by different factors that assess the risk. For cars, there are higher insurance rates for more expensive, potentially more dangerous cars, like sports cars. For homes, the same is true if there are problematic aspects of the house, such as 100-year-old plumbing or knob and tube wiring.
Getting these portions of a home modernized with up-to-date, safer home infrastructure may lower your premiums as you’re making your home less of a risk of pipe breaches or electrical wiring fires.
In the same vein as home improvements, security systems are another sign to insurers that you are doing what you can to reduce the risk to your home. Check to see if an insurer offers discounts for this type of action.
Installing a security system is an effective means of deterrence. People who would typically deface property or commit theft tend to hesitate to bypass a home entirely if a security camera is present. Cameras make it much easier to aid in investigation and arrest. Hence, their presence lowers the risk of crime to a property.
Finally, your own personal credit record is often used to determine a final amount for a monthly premium. People with good credit scores are considered lower risk and are rewarded for that with lower premiums. If your credit score could use some improvement, you’ll find that in addition to the financial freedom you get, there may be insurance benefits as well.
If you’d like to know more about getting the right kind of coverage for your home in California, we can help. Contact Panorama. We can look at your home insurance needs and find the right policy for you at premiums you can afford.