If you're tired of paying high rates for your homeowners' insurance, and you want to switch companies, make sure you do it right. There's a method to getting the best rates for your homeowners' insurance. One of the most important things you can do is obtain numerous quotes. You're going to find that rates can fluctuate quite a bit between different companies. Before you start requesting quotes though, here are four tips that will help you get the best rates, and avoid complications:
Build Up Your Credit Score
If you're going to start shopping for a new homeowners policy, find out what your credit score is first. You might not realize this, but insurance companies check your credit score before they generate a quote for you. If your credit score is low, and you've got some blemishes on your report, chances are good that you're not going to get the best rate you could with a better score. Before you start shopping for new homeowners insurance, take care of the credit issues you have on your report.
Know Your Discount Groups
If it's been a while since you changed insurance carriers, you might not be aware of the various discount groups that are available. Now that you're going to be looking for new homeowners' insurance take the time to familiarize yourself with those discount groups. Some of the available discounts include discounts for having a security system in your home or belonging to certain organizations such as AARP. You can also receive discounts on your insurance for working in certain career fields. When requesting quotes, be sure to request information on all discounts that you might be entitled to.
Understand the Cancellation Requirements for Your Current Insurance
If you're going to be canceling your current homeowners' policy, and the term is not quite up yet, it's important that you know what the cancellation requirements are. Some insurance companies charge additional fees or fines for early cancellation. If your current insurance company requires fines for early cancellation, you might be better off waiting until the current term is up before switching to another company.
Notify Your Mortgage Company
If you have a mortgage on your home, you'll need to notify your mortgage company as soon as you start shopping for a new policy. This will ensure that you don't get stuck with double coverage once your current policy is canceled. Your current insurance company will notify your mortgage company as soon as you submit a cancellation request. In some cases, mortgage companies will purchase a forced-place insurance policy to ensure that their interest is protected. You can avoid that by letting your mortgage company know that you're looking for new coverage, and then updating your insurance information with them as soon as you purchase the new policy.
Contact a company like Livings Insurance for more information and assistance.