Researching, talking to realtors, getting approved for a loan, touring, and finally selecting your first home requires a lot of thought and planning. And while all these steps are essential, there’s one step that’s often overlooked by first-time homebuyers: Shopping for insurance and finding the lowest rates.
Below, we’ll discuss 3 key tips for reducing your insurance premiums.
Tip #1 – If you’re currently renting, get renters insurance.
Renters insurance protects the contents of your rental home or condo (your own belongings) in the event of an unexpected tragedy such as a fire or theft. Of course, this is a good reason to have renters insurance to start with.
But you can also enjoy renters insurance by establishing a good loss-free claims history. Home insurance companies like to see that you’ve had insurance for a few years and haven’t made a claim. If you can establish this history now, you may get something like a 25% reduction in home insurance premiums for your future home.
Tip #2 – Consider bundling your insurance.
Larger insurance companies often offer different types of insurance. They may provide coverage for homes, cars, rental properties, health and more. If you need all or some of these insurance types, consider inquiring about bundling several different types of insurance together. Doing this often comes with discounts.
Tip #3 – Choose a disaster-free location if you can.
It’s not an option for everyone, but if you can, choose to live in an area that doesn’t have frequent acts of nature, such as flooding, tornadoes, or hurricanes. The propensity for these acts drives the price of insurance up.
If you must live in a state or region that has ice storms or tornadoes, you’ll have to deal with the extra cost of insuring your home there. Still, you may have options where other acts of nature are concerned. For example, say you can live in any part of a town or city that’s near a lake or river. In this case, try to choose something that’s not in a low-lying area. These places will tend to flood more often. They might include a requirement to buy flood insurance.
Purchasing home insurance may not seem like a top priority in the grand scheme of purchasing your first home. But remember that you’ll be paying premiums to protect your investment forever. It’s wise to put the extra time and effort in now to lower your rates.
Contact Miller Insurance Agency today for more information on coverage options for your first home.
Also Read: Disaster-Prone Area? Here’s Why Separate Deductibles for Disaster Damages May Help