Tips for Buying Home Insurance
One of the most overlooked but important parts of buying a house is shopping for home insurance. Insurance agents do find it ordinary to get those last-minute phone calls from title and/or escrow companies asking for a home insurance binder. To avoid this complication, start looking for a suitable homeowner policy as soon as both parties have agreed on a price.
The following are helpful tips to guide you as you shop for homeowner’s insurance:
To quote you a policy at the best rate, your insurance agent needs to know certain details, such as when the house was built, how old the plumbing and electrical systems are, what type of roof is installed, the house’s square footage, the number of filed claims in the past 5 years, Location and so on.
Insurance companies may deny coverage for houses in far-flung areas or in the absence of a fire hydrant on the street. In that is true for you, you can try a specialty or surplus-lines insurer, although you will have to wait for a quote much, much longer.
The bigger your deductible, the bigger your insurance savings. Discounts usually begin at a deductible of $500, going upward as the deductible climbs. The highest deductible you can go for is $10,000, but take note that a lot of mortgage providers will not allow you to exceed a $1,000 deductible. Be sure to clear this up with your lender beforehand.
Your Insurance Needs
To estimate cost replacement, agents often use a cost estimator. This ensures that you get enough insurance for your house. Take note that insurers do not pay for dirt, so if you bought a property with a huge lawn, don’t be surprised to get coverage for so much less than the price of the house when you bought it. What is included in the coverage is no more than the house itself, land excluded.
You can actually make choices on your home insurance coverage as per your preference. One is liability coverage, which is usually overlooked. This helps you in the event of claims to property damage or bodily injury. Let’s say you accidentally caused a fire on your neighbor’s property. You might need to live somewhere else, but your insurance will pay that neighbor.
Finally, be sure to take advantage of all the discounts available to you. Having a home security system that is hooked to a monitoring hub, for example, can instantly fetch you some 10% in discounts. Ask your agent about discounts.