When purchasing a home in the Houston real estate market, just like other areas of the country, there are many expenses that a new home buyer can experience. The cost of property inspections, appraisals, surveys, closing costs, mortgage company related fees and many other things that come along with buying a home. Saving money anywhere you can is a must. One area that you might be able to save money when buying a home is your homeowner’s insurance costs.
When you purchase your new home in Houston, Texas you will need to get it insured. If you have a mortgage loan on the property you will be required to get homeowner’s insurance. Below are some tips that can help you save some money and things to consider when buying your new homeowner’s policy.
Make sure you shop around. Insurance prices on homes in the Houston real estate market can vary by dollars, depending on the company you buy your policy from. Shopping around may take up some of your precious time, but it could definitely pay off in the end. Ask your friends about their insurance company, the customer service they provide and price of their coverage. Check with your national insurance departments to find out information on typical rates charged by major insurers. Check consumer guides, insurance agents, etc. All these sources will provide you with an idea on price, but never judge a book by its cover. You have to take into consideration the price but also what a policy covers, coverage amounts and service quality. Talk to numerous insurers to get a feeling for the type of service that they will provide. Don’t forget to check into the financial stability of the companies. Once you get all your information together narrow the field to the best three and then get a price quote.
Once you have chosen the insurers it’s time to consider the features of the policy. One way to help lower the cost of your homeowner’s insurance premium is to raise your deductible. The deductible is the amount of money you will pay toward a loss before your insurance company starts to pay on a claim, according to the terms of your policy. Most insurance companies will recommend certain deductibles, but you can always ask what the price will be if you were to raise the deductible higher. If you can afford to raise your deductible you may save as much as 25 . Remember, saving money is great but don’t get yourself into a bind in the event you have to make a claim.
Don’t get confused when it comes to what you paid for the home and rebuilding costs. Never include the value of the land under your home when deciding on how much homeowners insurance to buy. If you do, you will pay a higher premium than you should.
Improving your home security can same money on your insurance premium. You can usually get discounts for smoke detectors, burglar alarms and other security features. Monitoring the fire/burglar alarm may help further. Some discounts may be offered for sprinkler systems. Always ask your insurance provider what they recommend and how much you can save on your premiums. Don’t forget to take into consideration the cost of the features you are considering when looking at the overall savings.
A very important factor in helping to save you money on your homeowner’s insurance policy is maintaining a good credit record. Establishing a solid credit history can cut your insurance costs. Insurers are increasingly using credit information to price homeowner’s insurance policies. Check your credit regularly to be sure that your records are accurate.
Another way to possibly save money is to combine home and auto coverage. Many insurers give discounts if you have both types of coverage with them. Check with the insurers you are considering and see if they offer an additional discount. Be sure to compare the auto coverage with your current auto policy. You don’t want to pay more in one area to save a little in another.
And finally, here is a tip that can be very important when buying a home. Always consider the cost of homeowner’s insurance when purchasing a home. Check the CLUE report on the home that you plan to buy. These reports contain vital information on the insurance claim history and can help you judge some of the problems the home may have. Many factors can be involved when pricing the cost of homeowner’s insurance on a particular home so choose your home wisely. Your choice could cut your premiums.
Homeowner’s insurance only counts when you need to make a claim. Make sure when you are comparing companies and price that you take into consideration what you are getting and losing with each. Be sure that what you get will really take care of you in the event you need it. Don’t make the mistake of buying the home of your dreams only to have your dream taken away by an insurance policy that doesn’t replace or repair you home to its original beauty. Many home buyers have found out too late that too good to be true is probably right. Make sure that your policy doesn’t sound a lot better than it performs.
Author Resource:
Contact Richard Elkowitz for http://www.houston-real-estate-specialist.com/ Houston Real Estate and http://www.houston-real-estate-specialist.com/Homes-For-Sale-Houston-TX.aspx Searching Homes for Sale in Houston, TX.
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