Get a CLUE About Cheap Home Insurance

When searching for cheap home insurance, many people are surprised to learn how many factors contribute to the cost of buying home insurance; everything from credit scores to CLUE reports can affect the cost of home insurance. While most people understand the basics about their credit scores, few people understand how to verify the information on a CLUE report. With the majority of insurance underwriters now using CLUE, it is more important than ever to understand the basics about CLUE reporting.

CLUE stands for Comprehensive Loss Underwriting Exchange, and is a claims history database that allows insurance companies to access information about the dwelling or home in question in order to decide whether to ensure a home and at what cost.

Typical information contained in the CLUE report includes:

• Prior claims associated with the dwelling
• Type of prior loss and amount paid
• Description of the property

For homeowners and others searching for the cheapest home insurance quotes, it is often advisable to obtain a copy of the CLUE report in order to verify that all the information is correct.

Under the federal Fair Credit Reporting Act you can request a copy of your CLUE report from ChoicePoint Consumer Disclosure, P.O. Box 105108, Atlanta, Georgia 30348-5108, or call toll free 1-866-527-2600.

Ten Ways to Cut Home Insurance Costs

In challenging economic times, every dollar counts. To help save money on homeowners insurance we have put together the top ten ways to cut home insurance costs without sacrificing quality coverage. It's easy once you know how!

1. Shop for home insurance quotes online. Use a reputable service like Quotescout.com that provides comparisons for several different underwriters rather than one. Not only is it free and easier than ever to comparison-shop for affordable home insurance online, but it could save you a bundle.
2. Install a security system. If your home doesn't have a security system then it might be time to consider purchasing one; many homeowners insurance policies provide big discounts for security systems.
3. Avoid the bad dog list. Although it differs from location to location, certain breeds of dogs are often associated with a higher risk of bites or aggressive behavior that can increase the cost of a home insurance policy.
4. Install dead-bolt locks. Dead-bolt locks are an easy "do-it-yourself" type project that can save money right away. Just be sure to notify your agent that your home or property is secured with dead-bolt locks to obtain a discount.
5. Keep the house and property well maintained. Proper maintenance is necessary to assure the lowest cost home insurance rates; high bushes, poorly performed repairs and delayed maintenance could result in potential injuries or damage to the home, causing your insurance to cost more.
6. Install direct-wired fire alarms and a fire extinguisher. Not only is it the safe thing to do for your family, but installing direct wired fire-alarms and the properly-rated fire extinguishers can save money when it comes to insuring your home and property.
7. Keep your credit in good shape. Paying your bills on time and keeping your credit in good shape not only helps reduce your monthly bills but it can also keep your cost of home insurance down. Underwriters routinely use your credit rating when determining the price of insurance; make sure you review your credit rating once a year and correct any mistakes.
8. Ask for discounts. If you are a member of any organization, college graduate or other organization, be sure to ask about discounts on home insurance coverage. It could save you between five to ten percent!
9. Insure your car and home at the same time. Multiple policies often reduce the price of a policy by ten percent or more.
10. Avoid excessive claims. Before making the decision to submit small claims, determine if it is really worth it or not. Remember, every home has a detailed report pertaining to the claims history of the property. Excessive claims can lead to higher rates.

Shop Right to Save Big

When it comes to saving money on home insurance, the best time to begin is before you purchase a home! Many people are surprised to learn how much construction methods and other factors impact the cost of home insurance rates. With a little planning and preparation, you can keep your home insurance costs low by following these simple tips:

• Get quotes for home insurance in advance. Before making a final offer on a property, it is always a good idea to obtain an insurance quote from at least three agencies; not only does it assure you can find affordable insurance but it also might notify you of potential problems related to the property.
• Make a list of important features. The type of roof, construction materials and amenities used to build the home can dramatically affect the cost of home insurance. For example, a gable roof (the type that looks like a large "A" at the ends) is often more costly to insure in hurricane prone areas while a fireplace can increase the insurance premiums for almost any home. On the other hand, certain types of building materials can lower the cost of insuring a home; brick or block often costs less than frame construction.
• Check the crime rate. Contact the local police department to find out specific information about the crime rate in the neighborhood prior to making a final purchase. Not only will it provide the peace of mind of knowing your family is safe and secure, but a low crime rates reduces the cost of obtaining affordable home insurance.

Home Insurance Checklist

When it comes to saving money on home insurance, what you don't know can cost you. Learn how to think like a pro to get a rough idea about the average cost of home insurance with this handy checklist:

• Size of home. Size does matter when it comes to buying home insurance. Typically, houses with a greater square footage have a higher insurance cost. Also, the quality and type of materials used affects the price per square foot. Be sure to differentiate between the "living area" versus other areas of the home like the garage or porch, since each is assigned a different value when insuring the home.
• Age of home. While most people realize an older home might cost more to insure due to old wiring and out of date building codes, new homes can also be expensive due to the use of more expensive building materials and higher replacement values. If you aren't sure, use an online quote system like QuoteScout.com to compare prices for your zip code.
• Distance from fire station or hydrant. Even if the home is just a few blocks away from an existing fire station, don't assume you are eligible for lower insurance rates! Surprisingly, it is possible to have a home located near a station that doesn't service your area. This is particularly common near the edge of the town/county line. Always verify which station will respond to the home in question to make sure you are eligible for the best rate possible.

Best Practices When Buying Home Insurance

When shopping for the most competitive home insurance rates, a little planning and preparation can go a long way. Learn how to save a bundle with these best practice tips for finding cheap home insurance.

• Get a new quote every six months! Shopping for home insurance isn't usually on your top-ten list of fun things to do this weekend, but QuoteScout.com makes it easy to get the best rates. You only need to fill in a few bits of information. Rates change constantly especially in areas hit by hard weather or other claims; sometimes underwriters even stop writing a policy in a specific area. By obtaining a new quote every six months, you may find a more competitive rate.
• Update your information regularly. Many factors influence the price of home insurance, everything from credit scores to marital status. If you have experienced any major life changes like a new job, addition to the family, a child leaving home or other major events, it's time to obtain a new quote. It could save you money on your home insurance!
• Keep good records. Another easy-to-forget bit of advice for obtaining the best price on home insurance is to remember to tell your agent when you have work done on the home. For example, upgrading the wiring or heating furnace in a home could result in lower utilities, greater safety and lower home insurance. Make a point of communicating all changes to the home when obtaining a quote.

Calculate the Cost of Extras

Home improvements can impact your insurance rates for the better or worse; the trick is to understand how to calculate the true cost of extras before taking the plunge.

Many homeowners are surprised to learn the long-term costs of big-ticket items is often much higher than anticipated, even after the work is done. Taxes and insurance can add hundreds or even thousands of dollars to the cost of home improvements. For example, installing an in-ground pool can easily cost $15,000 to $45,000 for the initial installation and labor, but the increase in home insurance and taxes could cost hundreds of dollars extra each year. Before deciding on that big remodeling project or other extra, take time to calculate the full cost by following these simple steps:

1. Obtain a quote for the work to be performed, including financing, permits and labor.
2. Obtain an insurance quote for the property based upon the work to be performed to determine how much the improvement will increase the cost of home insurance each year. Multiple the rate by the number of years you intend to use the home, then add the sum to the total amount.
3. Obtain an estimate of the increased property taxes related to the improvement. Multiple by the number of years you will own the home then add to the total amount.
4. Obtain an estimate for how much the improvement increases the market value or sales price of the home. Subtract from the total above to determine the true cost.

Replacement Cost or Actual Cash Value?

One of the most confusing aspects homeowners encounter when shopping for affordable home insurance is whether to purchase a policy that provides replacement coverage or actual cash value. The difference between each type of coverage can make a big difference in your premium and the type of reimbursement received in the event of a loss. It is important to understand the difference to make sure you buy the right policy for your needs.

Replacement cost is designed to replace or rebuild your house or property with a similar type and quality in the event of a loss. Older homes that may be required to conform to new building codes, houses with extensive renovations or homes located in rapidly appreciating markets may benefit from replacement coverage. The downside is replacement coverage can cost more than ACV or actual cash value coverage.

Actual cash value is designed to provide coverage based upon the depreciated value of the property or "actual cash value" of the home in its current condition. It is typically less expensive than replacement coverage especially for homes with minimal depreciation.

Understand what type of coverage provides the best protection for your situation then use QuoteScout.com to comparison shop for the most competitive home insurance rates. Once you understand what each type of coverage entails it is easier to understand the differences between each rate quote and make an informed decision on the best protection for your family.

Are You at Risk and Not Even Know It?

If you are like most Americans, chances are you are raising your insurance rates and might not even know it. In these tough economic times, every dollar counts. Learn how to reduce your rates by keeping your eye out for these common culprits:

• Swings, gyms and other backyard equipment. Playing in the backyard is a lot of fun for children, but should one of those children fall or suffer an injury while on your property, it could translate into a big bill. Insurance underwriters may consider this and tack on an additional charge. The equipment make and model can affect the price of a policy, so do some research to find which equipment provides the most fun while keeping your policy price reasonable.
• Pool, sauna & hot tub. Owning a pool, sauna or hot tub can increase the cost of your home insurance policy due to increased liability as well as greater property value. Fortunately, there are steps you can take to make it safer and therefore lower the cost of insurance; appropriate fencing, security features and other measures not only save lives, but also reduce the cost of insurance.
• Fido. While a dog may be your best friend, don't expect the insurance company to agree. Prior to making a final decision about bringing a new dog home, take time to research the breed and temperament of the dog as well as obtain an estimate for home insurance based upon the breed. Always take time to properly train your new pet and obtain all required vaccinations and tags.

Location, Location, Location

You may have heard it said that location is the most important determinant of property value when purchasing real estate; the same can be said when shopping for home insurance. Not only does location affect the property value of your home, but also it can dramatically increase or decrease the cost of home insurance coverage. Learn how location is likely to impact your home insurance rates with these common situations:

• Waterfront: Not only does waterfront property typically cost more, but it is often prone to heightened risk due to environmental factors like flooding or tide surge. Expect to encounter higher home insurance for waterfront properties.
• Rural Living. Whether you are located high in the hilltops or down a distant desert road, rural living has its own unique advantages. Unfortunately, cheap home insurance isn't always one of them. The same peace and quiet that makes the area so highly desirable might also make it less accessible, especially when it comes to fire hydrants or stations. Avoid unpleasant surprises by finding out in advance how the distance might affect your insurance rates.
• Urban Living. With a fire station right up the road and a hydrant on every corner, urban living means access to all the amenities and services available in a big city. Depending upon the area it also might mean others have greater access to you and your home in the form of high crime rates. Form a neighborhood watch or participate in other programs designed to keep your home and family safe from crime; it's a great investment in the community and an even better return on your insurance value.
• Farm Living. Farming is as American as apple pie so it should come as no surprise that people from all walks of life dream of owning their own small farm one day. The fresh air and wholesome lifestyle often come with a cost of increased home insurance due to the higher than average risk of injuries related to upkeep, animals and equipment required to run the day to day operations of the endeavor.

Lifestyle Habits & Your Home Insurance

There are many factors than impact the average homeowner’s insurance rates; location, type of construction and property values are obvious factors, but some of your lifestyle choices might also increase the cost of your home insurance. Learn how to reduce the cost of your average home insurance rates by eliminating these common lifestyle related risks:

• Smoking. Not only is smoking bad for your health, but you will typically pay more for almost every type of insurance purchased, including home insurance. Reduce your risk of accidental fires and improve your health by making it a priority to stop smoking. The money you save on home insurance rates over the years will more than compensate for the cost of a quality smoking cessation program!
• Career. Your choice of career can influence many aspects of your life including the cost of homeowners insurance. In general, professionals and others in a low-risk occupation enjoy lower premiums, so it pays to shop around and compare.
• Bad Credit. Procrastinators beware! Paying your bills late is likely to impact more than your credit score; bad credit can actually increase your home insurance premiums. Set up an automatic payment plan at your bank to eliminate fees and other charges and restore your credit rating.