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When it comes to buying home insurance, there is a right way and a wrong way to go about it. Learn how to compare homeowner insurance rates the right way by reading through these common insurance blunders:
Mistake #1 - Ask Your Neighbor, Friend or Former Homeowner. One of the worst ways to compare homeowner insurance rates is by asking others what they pay. Plain and simple, it doesn't work. This is because homeowners insurance rates are determined by many factors including the home, credit score, neighborhood and many other aspects unique to the person and/or property to be covered.
Mistake #2 - Failure to Shop Around. Over the years, many people have heard frightening stories about buying insurance online. Today, that has all changed. In fact, even if you work with a local agent, the insurance company itself is likely to be located far from your area. Instead of tying yourself to a small selection, expand your choices and really shop around to obtain the best rates when purchasing your next homeowner insurance policy.
Mistake #3 - Rely on Past Rates. Unfortunately the cost of homeowners insurance tends to increase higher than the rate of inflation for other products or services; so don't be surprised to encounter a higher than anticipated rate when it comes time to renew the policy. Always be sure to have the latest homeowners insurance quote for your renewal date in order to compare rates against competing providers.