When you make the decision to buy your first home, it’s exciting! These decisions are often connected to other major life decisions like getting married or having children.When you finally make the decision to buy, finding ways to save money becomes a huge priority. Whether you’re buying a condo, a mobile home, or a house, you’ll want insurance that will adequately protect your investment as well as your personal belongings while also saving you money.
How much does home insurance cost?
Industry average home insurance rates in Ohio are $721 annually. Keep in mind, these rates reflect average home insurance rates, which typically would include discounts like age discounts, claims-free discounts, and in some cases, loyalty discounts. For a first time home buyer, these discounts might not apply.
That’s why it’s important to prepare and investigate your options. The money you save could go into your mortgage or into home improvements.Speaking to an insurance agent before you buy a home might alert you to potential problems or high costs. Insurance agents who specialize in home insurance see their share of claims and have access to the insurance company ratings in various areas.
What can make home insurance more expensive?
If you made claims under a previous insurance policy (such as renters insurance) you wouldn’t be eligible for the claims free discount which could cause you to pay significantly more. If you don’t take advantage of bundling your home and car insurance, you’ll end up paying more. You’ll want to evaluate the total cost of both policies with the same insurer. Always evaluate your insurance as an entire package and not one on one. Be strategic and use all your insurance to negotiate. You can even bundle with things like boat insurance or life insurance.
Also, if you’ve never had insurance on a residence or if you have had a gap in your insurance history, or if you’ve been previously canceled by an insurance company for non-payment, all these things could work against you. It could also end up costing you more if your home has special features or requirements, like if it has special materials used in its construction, if it’s in an area with lots of claims, or has higher risks such as a flood zone.
How can I save money on home insurance?
There are several ways that you can take action before your first home purchase that could save you hundreds of dollars on your insurance and first home purchase.
– Tip: Don’t wait until the last minute to buy insurance.
There’s a lot more to home insurance coverage than just signing up for a policy. Often people get so burdened with the home settlement details (i.e., selection, mortgage pre-approval, home inspection, settlement costs, etc.) that they postpone home insurance to the very last minute. You may feel pressured to make a choice quickly, and you may pay less attention to the coverages you get with your home policy. Do not put yourself in this position.
– Tip: Know the “dwelling value”.
Your quote will be based on the building or dwelling value. Some new homeowners are surprised to find the real estate value of their home is not always the same as the dwelling value. This often causes unnecessary surprises, costs or issues.
– Tip: Don’t just go with the cheapest.
When you choose insurance just because it’s cheap, you’re not considering how you’ll be paid in a claim. Find a provider who offers you the most complete coverage for the things you need. Consider an independent agent that represents multiple insurance companies. He/she can customize an insurance package to meet your specific needs.
– Tip: Don’t forget about your car.
In your new place, your car insurance rates may change. Is the car garaged at night? Is your new neighborhood lower to higher in crime that your current home? Is your work commute longer? Bundling your insurance could make you a more valuable client to the providers; you save money.
– Tip: Don’t assume the cost of your insurance will be the same as it is for the current owner.
Often, people ask the current homeowner to itemize expenses; electricity, school taxes, property taxes, and home insurance cost. Keep in mind that their home insurance premium is not a good indicator of how much you will pay. Insurance providers will use your unique personal information in order to establish a cost. A person’s age, credit score, and even profession can all be taken into account and will not represent your specific situation. Get your insurance prices before you close the deal.
– Tip: Don’t presume that the mortgage lender’s insurance is the best value.
Your mortgage lender may offer you mortgage insurance. They do this to ensure that if something happens to you that they get their money back, which is understandable. However, their rates may be generalized to match their average clients. This could end up costing you more. You might have advantages over the average person.
– Tip: Choose Licensed, Independent Agents.
Call centers don’t always have your best interests in mind. For over 40 years, our team at Guy P Williams Insurance Agency has remained independent. This flexibility & diversity permits impressive rates with comprehensive coverage. Representing you, we have access to dozens of “A rated” insurance companies. We bring you several smart strategies, each considering price and protection. We will guide you through your decision.