The Homeowners Insurance Checklist All Home Buyers Should Use
As you shop for a your dream house, you would have to consider quite a number of factors, including the price itself of the property, taxes associated with home ownership, location, cost of living in the area, and schools among many others. But there’s one thing you shouldn’t overlook, and this is the need for a homeowners insurance policy.
Always keep in mind that your home insurance is a mainstay in your monthly expenditures, as you’ll keep paying for it for as long as you live in the house. Since it’s a lifetime expense, you want to make sure you purchase the best one right off the bat. This checklist can help you achieve this goal.
Make sure your credit rating is correct
Having a good credit history benefits you in many different ways. Aside from making it easier to secure a competitive rate on your mortgage, it can also pave the way for a lower-cost policy that provides good coverage.
However, even the tiniest mistake on your credit report can already bump up your rates – both for your mortgage and homeowners insurance – so high. Avoid this by requesting for a copy of your credit report as early as possible to ensure it doesn’t have any errors on it. Contest it right away, in case it does.
Proximity to the fire department
When buying a home, factor in the distance between it and the nearest fire department. You want the property you’ll live in to sit nearby such an important public service, especially since you never know when disaster might hit.
Not only that, but houses in close proximity to highly-rated and well-staffed fire departments usually cost lest to insure.
How old the home isYou might have set your eyes on purchasing a traditional, older home. As beautiful as it may be, note that in most cases, such structures can cost you a lot more to insure. This is especially true for ornate and other special features such as wooden floors and ceiling molding. Nowadays, they have higher replacement costs, so it follows that you’ll pay more for insuring them.
Also keep in mind that old and outdated plumbing and electrical systems can become hazardous, not just because of age, but also due to improper maintenance.
Type and current state of roof
The roof is the biggest immovable component of homes, and it is also one of the most expensive to repair and replace. So before you make that down payment for the house you want to live in, check its condition first. Houses with faulty roofs cost a lot more to insure.
The type of roof itself as well as the materials used in it will influence your home insurance premium. A roofing system that has special features, such as greater fire- or hail-resistance can qualify you for a discount on your policy premium.
This checklist won’t just help you secure a homeowners insurance policy with good coverage at a lower price. It can also prevent you from buying a home that comes with a lot of problems. Remember: home ownership is expensive, but it doesn’t mean you should spend more than what’s necessary to feel the joys and pride of owning a house.