One of the first requirements for securing a mortgage is to have a homeowners insurance policy in place. Finding the best policy for your property isn’t unlike shopping for any other type of insurance. You’ll want to be proactive with your research and your home repairs and modifications. There are a lot of steps you can take to help reduce the cost of a homeowners insurance policy.
Roof Repairs
The age of your house’s roof can have a major impact on the price of homeowners insurance. According to Steve’s Roofing, many types of roofs are built to last between 20 and 25 years. Certain other roofing materials may even last up to 50 years before breaking down. However, many insurance carriers consider 15 years to be the cutoff with regard to charging more. The type of roof also is a factor. For instance, a flat roof is considered a greater risk, so it’s more expensive to cover.
Fire Hazards
The potential damage from fire is a major concern for homeowners and insurance carriers. Taking steps to reduce fire hazards can go a long way toward lowering your premiums. According to Do Hard Money, some of these hazards include malfunctioning fume hoods, dangerously situated space heaters, and faulty electronics. Is your home’s wiring up to code? Getting those upgrades from a certified electrician is something that should be shared with your insurance carrier.
The Home’s Location
Location is key in the real estate industry. The location of a house in a good school district can increase the value of that property. The location can also be a detriment with regard to homeowners insurance. If you live within five miles of a coast or waterway, then you might be at a higher risk of experiencing a flood, which could affect insurance rates. Although, it’s worth noting that flood risks can affect every homeowners in every state regardless of where they live.
Your Deductible
The insurance deductible is the amount you’d pay out of pocket against any claim. That money is usually the “first” money paid. If you have a $1,000 deductible and the claim is for $1,200, then the insurance company would only cover $200 for the damage. A higher deductible can translate into a lower premium. You should always have that deductible set aside in a savings account just in case.
All of these things are important to consider when figuring out how you can protect your home for the best price. Homeowners insurance is one of those items that you hope you’ll never need but that you’re glad to have when damage occurs.
LEGAL DISCLAIMER
Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.
