Whether a buyer has just started searching for a home or they’re waiting to close, they shouldn’t forget to insure their investment. Home insurance options aren’t one-size-fits-all, and policy costs depend on variables such as the home’s age, location, deductible and coverage level. Below are several things for homeowners to consider when buying home insurance.
The Home’s Location
Along with construction, size and condition, location plays a crucial role in insurance type and availability. Unlike homebuyers, however, insurers aren’t evaluating nearby schools and commute times. Other factors, such as a home’s proximity to a fire hydrant or police station, may make it less expensive to insure.
Flood Insurance is Important
Flooding damage isn’t covered by most home insurance policies. Any home in a floodplain must have separate insurance for these types of claims. However, even those who don’t live in flood zones aren’t off the hook. Flood insurance is a smart choice for all homeowners, regardless of the home’s zoning.
Homes With Pools Need Extra Protection
Buyers pay extra for homes with hot tubs and swimming pools, and for good reason: They’re a great way to relax. What’s not so relaxing, however, is the effect of a pool on home insurance premiums. Homeowners should consider purchasing additional liability coverage, which pays court costs and other expenses if they’re found liable for an accident.
Claims History Matters
Whether the home search has just started or the family has lived there for years, it’s not too late to learn about the dwelling’s claim history and its effects on home insurance rates. Special industry databases contain information on past claims, which can cause the new owner to pay more for coverage.
High Deductibles Pay Off
Homeowners should compare prices before signing up for an insurance policy. Compare rates, coverage limits and deductibles to ensure adequate coverage in all situations. Homeowners should get the highest deductible that’s affordable because the average person only files a claim every ten years.
To some, home insurance seems like an unnecessary expense. However, it’s important to protect the home and its contents from loss and damage. With the right home insurance policy, homeowners can ensure that they won’t suffer undue financial hardship in the event of a loss.