From Homeowner’s To Condo To Mobile Home Insurance: A Home Buyer’s Insurance Checklist

Whether you are looking for standard homeowners, condo, or mobile home insurance, you’ll need to find an affordable homeowners insurance policy. Banks and mortgage companies want to be sure that their investment in your home is covered in case of disaster, and you’ll want to be sure that your coverage is more than adequate for your needs to allow you to get a fresh start should the worst happen. At the same time, you want to be sure to get the best deal out there. Home insurance policy rates are determined by a variety of factors. Shop around for the best rates with different insurance carriers, and check the following to be sure that you’re getting all the savings you’re entitled to.

What’s your credit rating?
Good credit may make the difference between getting homeowners insurance at a good rate—or not. Depending on where you live, it might mean quite a bit of savings, especially if you live in the Lone Star State, where Texas home insurance premiums are the highest in the country. Start by getting copies of one or all of your credit reports (get them for free at the Federal Trade Commission’s website at www.ftc.gov). Make sure your report is accurate, and correct any mistakes immediately. Take steps to improve your scores, and you’re on your way!

Age, Construction and Condition of Your Home
While an insurance company may not deny you coverage on an older home, they can if the home is in disrepair. Also, take into account that an insurance company will perceive an older home as more expensive to repair due to previous maintenance issues. In addition, the materials used in the construction of your home play a significant role as well. Brick homes are perceived as being better built and longer lasting than frame houses. Basically, if the insurance company sees that your home is “built to last,” you can net some savings.

Upgrade!
Plumbing, electrical and heating systems can age or become dated as new improvements are made. Upgrade to new systems and appliances to make your home more energy-efficient. This may even reduce fire insurance or flood insurance costs. You should definitely install smoke and fire detectors, and consider a burglar alarm system, strong doors, dead bolt locks and window locks to provide extra security and knock down your premium costs.

What’s Your Location?
Moving to an area with a history of natural disasters increases your risk factor, so you should expect to pay higher premiums due to the frequency of storm damage caused by hurricanes and high-wind storms, or think about purchasing earthquake insurance if moving to an area that has experienced constant seismic activity. Other factors, such as the local crime rate, also increase your vulnerability and your premium payments. Even such simple things as the proximity of your home to the local fire station may make a big difference in lowering or increasing your insurance rates.