8 Steps to Buying a Home
Shop for homeowners insurance
The price you pay for your homeowners insurance can vary hundreds of dollars, depending on the insurance company. Here are some things to consider when buying homeowners insurance.Shop Around
It'll take some time, but could save you a great deal of money. Ask your friends, check the Yellow Pages or contact your state insurance department. Also check consumer guides, insurance agents, companies and online insurance quote services. This will give you an idea of price ranges and tell you which companies have the lowest prices. But don't consider price alone. The insurer you select should offer a fair price and deliver quality service, when you need assistance filing a claim.
Raise your deductible
Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim. The higher your deductible, the more money you can save on your premiums. Today, most insurance companies recommend a deductible of at least $500. If you can afford to raise your deductible to $1,000, you may save as much as 25 percent.
Don’t confuse what you paid for your house with rebuilding costs
The land under your house isn’t at risk from theft, windstorm, fire and the other perils covered in your policy. So don’t include its value in deciding how much homeowners insurance to buy. If you do, you will pay a higher premium than you should.
Buy your home and auto policies from the same insurer
Some companies that sell homeowners, auto and liability coverage will give a discount on your premium if you buy two or more policies from them. But make certain this combined price is lower than buying the different coverages from different companies.
Make your home more disaster resistant
Find out from your insurance agent or company representative what steps you can take to make your home more resistant to windstorms and other natural disasters.
Improve your home security
You can usually get discounts for a smoke detector, burglar alarm or dead-bolt locks. Find out what your insurer recommends and how much you'd save on premiums.
Seek out other discounts
If you're at least 55 years old and retired, you may qualify for a discount at some companies. Some employers and professional associations administer group insurance programs that may offer a better deal than you can get elsewhere.
Maintain a good credit record
Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price homeowner insurance policies.
When you’re buying a home, consider the cost of homeowners insurance
You may pay less for insurance if you buy a house close to a fire hydrant or in a community that has a professional rather than a volunteer fire department. It may also be cheaper if your home’s electrical, heating and plumbing systems are less than 10 years old.