Buying Your First Home Insurance Policy
Save Money with These Tips Finding ways to save money when you buy your first home becomes a huge priority for first-time homeowners. Whether you are buying a condo or a house, you will want to find insurance that will adequately protect your investment as well as your personal belongings while saving money. How Much Does First Home Insurance Cost? Home insurance rates vary due to many factors and normally would include discounts like age, newer roof, or alarm system. A Sihle Insurance Group insurance agent will be able to investigate your options including any discounts that may or may not apply. What Could Make Your Home Insurance More Expensive?
- If you never had previous insurance on a residence or if you have had a gap in your insurance history.
- If you have been previously canceled by an insurance company for non-payment (even your car insurance might count)
- If your home has special features or requirements like if it has special materials used in its construction, or has higher risks like if it is in a flood zone or is at higher risks of wind damage and tornadoes.
3 Tips to Save Money on Your First Home Insurance Costs There are several ways that you can take action before your first home purchase to save money adding that can add up to hundreds of dollars on your insurance and first home purchase. 1. Do Not Leave Your Home Insurance Purchase to the Last Minute There is a lot more to home insurance coverage than just signing up for a policy. You might be surprised how many people get so carried away with the selection of their first home, getting pre-approved for a Mortgage, the home inspection, and negotiations, that they leave the insurance on their new home to the very last minute. What happens when you do this is that you will have limited options. You will feel pressured to make a choice quickly, and you will not even care about the coverages you get with your home policy. Do not put yourself in this position. Tip: When you get your quote for home insurance it will be based on building or dwelling value, some new homeowners are surprised to find the real estate value of their home is not always the same as the dwelling value. Making poor insurance choices can cost you hundreds of dollars in the short term (which is bad enough), but may actually cost you thousands of dollars and a great deal of stress in the long term. When you choose insurance just because it is cheap, you often do not look into how you will be paid in a claim. You forget about the insurance once you have moved into your new home, and then when a claim happens that’s when people end up paying the most. 2. Do Not Assume the Cost of Your Insurance Will Be the Same as the Current Owner’s Many people ask the previous homeowner how much the cost of electricity, school taxes, property taxes, and other expenses were when deciding on buying the home. The answer to how much they paid in insurance is not a good indicator of how much you will pay. If the home is in a high flood area or is in a zone where there are many windstorms or tornado claims, this information may be easy to find out; however, the basis of how the cost of their insurance is calculated will be completely unclear. Insurance policies take into account very personal information in order to establish a cost. A person’s age, credit rating, profession, and other personal choices in what kind of insurance they chose will not represent your situation. Get an insurance price before you close the deal. 3. Don’t Skip the Home Inspection; Use it to Save Money Long Term The home inspection is your biggest clue to potential problems with your home. Having a home in disrepair can cost you a great deal of money. Home inspectors can potentially help you identify hidden problems, and alert you to repairs that you will have to make to keep your home safe from damage. Your home inspection may also give you tips on how to improve your residence in ways that will give you discounts on your insurance costs. A Sihle Insurance Group agent can help you evaluate these as well.