5 Homeowners Insurance Tips For Aspiring Homeowners

The ongoing real estate crisis has led to massive numbers of very value priced properties coming on the market, and as a result many former renters are now ready to become homeowners. Part of the process of becoming a homeowner is shopping for and acquiring homeowners insurance. Mortgage lenders require a policy which will replace the home in the event it is destroyed. During the hectic and chaotic home buying process, shopping for homeowners insurance is often shuffled to the bottom of the stack. As a result many purchasers overpay for their coverage.

Here are 5 tips to help new homeowners save on their insurance.

1- Get your credit in order before you start searching for a home

Most people in the market for a home start by calling a real estate agent or mortgage broker. Each of them can and usually will be very helpful in getting you qualified for a mortgage, but their efforts will be geared toward making sure you meet the minimum standards to obtain the mortgage. This is not the way to get the best deal on either the mortgage or the homeowners insurance policy. People with higher credit scores pay less for both. Be sure to do what is necessary to raise your credit score prior to diving into the home buying process.

2 – Find out the history of the home you are buying.

A home with a history of problems and therefore insurance claims is going to cost more to insure. Most people fail to realize that this plays a part in their insurance costs.

3- Check that the home you are making an offer on has adequate fire protection

A home that is far from fire departments and fire plugs is in more danger of burning completely in a fire and will cost more to insure. In some areas this is not a major issue, but the further out from a major city or suburban area you are, the more important it becomes.

4 – Shop for a newer home

Newer homes have complied with modern building codes and are thus safer than older homes. They are therefore cheaper to insure. Buying that quaint old historical home may appeal to some, but they can expect to pay a lot more for insurance. In addition, a newer home is more likely to have features such as a hard wired security system and even a sprinkler system. Sprinkler systems reduce insurance costs by as much as 20%.

5 – Consult with an insurance agent ahead of time

If your auto insurance company also offers homeowners insurance, then consider combining the two policies for a discount. In addition, your insurance agent will be able to show you other discounts the company may have available and the steps you need to take to qualify for them.

Most people just decide to buy a home and then start looking at homes right away. A little extra preparation could save a lot of money over the long haul.

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