subject: Basic Advice For First Timers Buying Home Insurance [print this page] Intending to buy a house is a big commitment. You're putting a lot of money down and you must expect having to make monthly payments each year to pay off loans. A home is an investment; one that can grow in value as you care for it. And in most cases when you're getting a loan the bank will want to know that you will be getting or already have insurance.
When shopping for homeowners insurance you should always know when the home was built, the age and current condition of the plumbing and electrical wiring, the materials used to build the home, the size of the property, and the location of the home. This is a lot of information but it is all very basic and easy to attain. You should call in home inspectors to assess the conditions of your property and to provide advice on what provisions should be made and what things are stable in their current state.
There are going to be things that raise rates on your home insurance policy. Houses with questionable construction and outdated substances like asbestos are at higher risk and therefore will cost more. So are rural homes without a nearby police or fire department. And homes in flood or storm zones require special packages for protection.
Things that lower your rates included newly updated homes with new wiring and electric work, stronger construction and fire-resistant materials, and homes with smoke alarms and security systems in place. Homes up to code or exceeding safety code regulations are cheaper to insure.
You should take whatever information you know about your home to make an informed decision about how much coverage you need and what types of coverage are necessary. All homeowners should request that liability be included in the policy. This protects you against bodily injuries and property damage to others on your property or will pay for the tarnished property of neighbors. So if your tree falls and destroys your next door neighbor's pool you can file a claim to help pay. Your invitation to the BBQ may be rescinded but at least you're not paying for his new pool.
Deductibles will save you money when it's time to claim. A $500 deductible is when you might start seeing discounts. A lot of mortgage companies will limit you to around $1,000 though so don't take out too high a deductible. Always make sure that the limit you set yourself is something that you can afford on your own without support, or at least with as little support as possible. Essentially the point of the deductible is what you think you can pay yourself before the claims payments start coming from your home insurance company.
Use common sense and research to back up your decisions when shopping for the right company and policy.
by: Mark Etinger
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