When you purchase a home, you also need to buy homeowners insurance, so it’s recommended that you consider your insurance options while you search for your dream home. With a few smart decisions, you can save hundreds of dollars and get the coverage you need. Listed below are some tips that might be useful for you:
Get the Facts
Gather as much information as you can to get an estimate of potential insurance costs when you find a house. Some factors that can affect your premiums include construction materials used to build the house, and the age of plumbing, electrical, and other systems within the home, for instance, less flammable roofing material or masonry homes can provide an insurance price break, particularly in dry areas of the country that are prone to fire damage.
Potential buyers and homeowners can review material recommendations and current building codes on the website for the Institute for Business and Home Safety.
Be Aware of Geography
Irrespective of the materials used to build your home, where you live can have a significant effect on your coverage availability and insurance premiums. Homeowners are likely to pay more for insurance in areas that are prone to tornadoes, wildfires, hurricanes, earthquakes, or any other severe weather and natural disaster.
Your Rates Can Be Affected by The Neighborhood You Choose
For instance, homes that are located near a fire department might cost less to insure. Even though seclusion has its advantages, your insurance rates won’t be lowered if emergency vehicles find it difficult to reach your home.
Consider Your Comfort Level
As you establish your homeowner’s insurance coverage, you’re able to choose the amount you would need to pay out of your pocket when you have a claim (your deductible level). By opting for a higher deductible (like $1,000 instead of $500), you can significantly lower your monthly premiums. Or, some people may even prefer paying a higher premium every month for peace of mind in the event of a disaster.
Save Money Through Safety
By looking into safety and prevention features that usually merit a discount, you might be able to save on insurance premiums. Take precautions like installing deadbolt locks, and consider buying monitored security alarms, both of which can prevent a costly (and frightening) break-in and ward away thieves. To reduce the risk of severe smoke and flame damage, easily accessible fire extinguishers are another good addition to your home.