Save Money With Lower Home Insurance Rates!

Save Money With Lower

Home Insurance Rates!

Factoring Insurance into the Cost of a New Home

When shopping for a home, everyone considers things like price, architectural style, neighborhood and access to shopping. However, there is one other important element that some overlook —what the cost of homeowners insurance is going to be for a particular home. From that perspective, here are some things find out before purchasing a home:

Is the home in a town that has a professional rather than volunteer fire department? Chances are you'll pay less for homeowners insurance if your new dwelling is located in a town that has a professional fire department because they have the resources to respond more quickly to fires than volunteers do. Also, it may seem insignificant, but the nearer your prospective home is to a fire hydrant, the lower your insurance premiums will be.

Are the home's electrical, heating and plumbing systems less than ten years old? Older heating, plumbing and electrical system can pose dangers to a home from things like fires and sewage backup, and can therefore lead to higher insurance premiums. Make sure to find out exactly how old the systems are in the home you are thinking of purchasing —if the current owners have upgraded these systems, your insurance premiums, not to mention your utility bills, will undoubtedly be lower.

If the present homeowners cannot give you an answer on this question, or you suspect their answer is less than candid, you can request that they furnish you with a CLUE (Comprehensive Loss Underwriting Exchange) report of the home you are contemplating buying. These reports, available from the federal government, include the history of insurance claims on the property and can therefore give you great insight into some of the problems you might encounter with the home.

Do I need flood and earthquake protection for the home? General homeowners policies don't cover flood or earthquake insurance, so if the home you're considering buying is in a geographic area known for these natural disasters, you are going to have to buy additional coverage. You can find out more about flood insurance at The Federal Emergency Management Agency's Web site: Most insurance companies also offer separate earthquake policies if you live in a state like California, which is prone to getting the shakes.

There are many things you have to consider when shopping for a home, and one of those things should be the cost of homeowners insurance. It may not be the determining factor in your choice, but it should be an element of your ultimate decision.