Home Off Beat 3 Things to look for when price shopping for home insurance

3 Things to look for when price shopping for home insurance

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Whether you have begun the hunt for a new premise or you are just about to close the deal on buying your new home, an essential factor you can’t disregard is taking an insurance cover for your asset. Enter the home buyer’s’ best friend; home insurance.

Similar to other types of insurance, there isn’t a one-size fit all insurance policy. The price of home insurance usually depends on the home’s age, location, deductible amount and coverage level. To figure which kind of home insurance suits you best, and within your budget, you’ll look into the variables as mentioned earlier and others as well.

We have compiled a list of 3 things to look for when price shopping for home insurance to ensure that you buy the perfect policy.

Location

Along with construction type, size and the general state of the house, the area of a home plays a crucial role in the price of insurance policies. Unlike homeowners, the insurer isn’t keen on checking out your commute time, impressive nearby restaurants or school districts.

Other factors come into play. For instance, homes located close to lauded and perpetually staffed fire departments and at times fire hydrants may cost you less in matters premiums.

Obviously, proximity to the coast weighs heavily on the price of home insurance. You are presumably going to fork out a pretty penny for your scenic spot adjacent to the beach. The increased risk of catastrophic weather that results in claims is the driving force behind the high cost of insurance.

In addition to higher policy price, coastal home policies at times include a distinct windstorm or hurricane deductible based on costs required to reconstruct a home.

Your home’s claim history

Your home’s claim history consists of the time you didn’t own the home. Get acquainted with your residence’s claim history to learn how it affects or could affect your insurance rates. The Comprehensive Loss Underwriting Exchange (CLUE) is useful in this regard. CLUE maintains a record of insurance claims on houses. It’s somewhat like getting a credit score for your home.

A claim filed five years ago could impact on your insurance rates, even if you weren’t the property owner. In spite of all these, it’s worth noting that not all previous claims hurt rates. A recent application seeking for the replacement of a roof damaged during a windstorm adds to the appeal of the house and consequently the insurer. Supposing that you are aiming to purchase a property and want a CLUE report, check with the current owner. Nonetheless, there are no guarantees they’d comply but there is no harm in inquiring.

Contact at least three companies to make comparisons on coverage          

Your mortgage lender perhaps requires you obtain a homeowners insurance. Depending on the lender you may also be obliged to acquire additional insurance cover such as flood insurance. You’ll not be compelled to buy from a specific company, instead, contrast price, customer reviews, and coverage.

Ensure you secure the right amount and type of coverage. Look for value and not low prices. You’ll mostly contact insurance companies in times of calamity, therefore, choose the insurer with the best customer service reviews.

Article Submitted by Community Writer.

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