What You Didn't Know About Saving Money on Your Missouri Homeowners Insurance

What You Didn't Know About Saving Money on Your Missouri Homeowners Insurance

Do you know how much what you don't know is costing you?

Sure, everyone knows that saving money on your Missouri homeowners insurance is a good thing. Hey, anything that puts more money in your pocket is a good thing! But do you know what you need to do to shave 20% or more off your insurance policy? Or are you just going along with what you've heard in the past and hoping it works out for you?

The basics of saving money on homeowners insurance are pretty well known-you shop around, invest in some theft-proof locks (so at least if you're robbed blind you've got the evidence of a B&E to back you up!) and make sure you're buying in an area that doesn't get flattened by floods or windstorms once a year. But is that all there is to it? Absolutely not-and you might be surprised to find out just how much what you don't know really can hurt you!

Raise Your Deductible

Did you know that, regardless of where in Missouri you happen to live, the fastest, most efficient method of shaving big bucks off your Missouri homeowners insurance policy is to raise your deductibles? Insurance companies pay out millions a year in homeowners insurance claims, and anything that's going to lower that number is going to immediately save you money. When you raise your deductibles you're volunteering to pay more every time you have to file a homeowners claim in exchange for lower monthly premiums. Studies show that:

a) The standard deductible for a homeowners insurance claim is $250(ish).

b) By raising your deductible to $500 dollars you can knock up to 12% off your premiums.

c) Raising your deductible to $1,000 will save you up to 24%. Most experts recommend setting your deductibles at a minimum of $1,000 to provide you the best coverage and premiums with a deductible you're likely to be able to come up with in a hurry.

d) Deductibles over $2,500 will save you 30% or more.

And these savings go into effect the minute you sign on the dotted line.

Raise Your Credit Score

It's impossible to over-emphasize the point: Your credit score is going to affect just about everything you do in today's society, from buying a car to getting a job to purchasing a Missouri homeowners insurance policy. The better your credit score is, the less you're going to be paying in premiums each month. It pays to keep your credit in fit, fighting shape!

How can you raise your credit score? First and foremost, make sure you're paying your bills on time every month. Late payments, especially on loans and credit cards, and accounts that go into collections will send your credit score plummeting faster than handing it cement shoes and giving it a friendly "shove" off the Golden Gate bridge.

Pay off any old debts. Although delinquent accounts can stay on your credit report for up to seven years, most companies will remove them within months of your debt being paid. If you can't pay off your debt immediately, ask to work out a payment agreement that will make your account "current" and minimize the effect it's having on your credit score.

Finally, check your credit report for mistakes. Things like joint accounts, accounts opened by people with similar names (especially if you happen to be a "junior") and accounts that have been paid but have not been credited accordingly often pop up on credit reports, and a quick investigation will wipe them off of your record and raise your credit score within 60 days or less. You should check your credit score at least once a year, and always before purchasing a Missouri homeowners insurance policy.

Don't Insure Your Land

Many people take a look at their mortgage payments and call it a day when they're determining the amount of homeowners insurance coverage they need, but if you're doing that then you're paying too much. Unless you're a farmer a hailstorm or a brush fire probably isn't going to do the kind of damage to your land you need your Missouri homeowners insurance provider to pay for, and eliminating the cost of the land is going to shave hundreds off your annual premiums.

Make Your Payments Electronically

Do you remember when they used to charge a fee for paying your homeowners insurance payments over the phone or via the Internet? Now it's the other way around-companies are so tired of paying for paper billing and dealing with manually processing checks that they're actually charging customers up to $5 to pay their premiums by check. $60 a year isn't much, but chances are you can find something better to do with it than pay for payment fees!

What you didn't know about saving money on your Missouri homeowners insurance policy could be costing you hundreds a year. Put these quick tips into action and you'll be amazed at how much you can save. Who knows? You might just make it to Disney World this summer after all!

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• What You Didn't Know About Saving Money on Your Missouri Homeowners Insurance - May 8, 2009 - 12:41:53 PM