Finding the right homeowner insurance is one of those details that home buyers often take for granted. Insurance agents get those frenzied calls from insurance agents all the time, seeking a home insurance binder. To avoid this scenario, shop for a homeowner policy the moment your purchase offer is accepted. And remember that homeowner insurance is different from a home warranty plan.
The following tips will help you purchase home insurance, and save time and money at the same time:
What Affect Insurability
Your insurance agent will consider a number of details before quoting you a rate for your policy.
These include, among others, your home’s square footage and location, when it was built, the age of your plumbing and electrical systems, the type of roof you have, and the number of claims, if any, filed within the last five years.
If your home is located in a rural area where there’s no fire department or at least a fire hydrant close by, your application for insurance may be rejected. In such a case, you may have to approach a specialty or surplus-lines company, but be aware that a quote will probably take longer to arrive.
Working with Deductibles
A higher deductible on your policy means bigger savings. Insurance companies usually give discounts starting at a $500 deductible, and as your deductible goes up, so does your discount. With most insurers, the highest deductible you can get is 10,000. However, because some mortgage companies disallow deductibles above $1000, make it a point to ask your lender first.
How Much Insurance to Get
Remember that insurance companies will not insure dirt. So if you’re planning to buy a home with a large lot, don’t be shocked to know that the value of your policy will be so much less than what you’re paying for the property. That’s because you’re paying for coverage for just the home, not the land.
The good news is, you have lots of options that you can tailor your home insurance policy with.
One is liability coverage, which is usually overlooked. This will secure you against property damage and bodily injury claims. Check homeowners insurance to learn more.
Be sure to avail of all the credit that you’re qualified for. If you have an alarm system that is hooked to a monitoring station, you could easily get up to a 10% discount. And if you’re older than 50, you might just get another type of discount. Check insurancehub.com/homeowners/home-insurance/ for more info.
Reviewing Your Policy
Talk to your agent and go over your homeowner policy at least every three years. Things change, from your coverage to the market and of course, your needs. Your insurance should always be updated because, after all, you can never tell when you’ll need it. Visit https://www.wikihow.com/Shop-for-Home-Insurance for other references.