Buying a new home is an exciting time. A costly time, but still exciting. Once you have the funding in place to purchase the house, it’s time to start thinking about getting a homeowners insurance policy. Not only is it required by law. Homeowners insurance is an absolute necessity. To get you prepared to move into your new home, here are some important insurance purchasing tips:

 

Install a security system and smoke alarms

 

Keeping your home safe from burglars and prepared to attack fires before they spread is important. You always want to be safe. But there is another benefit to safe-proofing your home. Insurance companies will decrease your monthly home insurance premiums, perhaps by as much as 5%, if you have a quality security system and smoke alarm in place. Why? Because those that do are less likely to need to file a claim.

 

Increase your annual deductible

 

Homeowners insurance is similar to health insurance in that getting an insurance plan with a higher deductible will lower your monthly premiums. The only downside to doing so is when you have small claims, you’ll likely be on the hook for the bill and won’t have any insurance to cover it. However, if you ever have major claims, you’ll be thankful once you have your deductible paid off.

 

Bundle with car insurance

 

It pays to purchase car insurance and home insurance together. Insurance companies offer discounts when buying both lines of insurance at the same time. We want you to save as much money on insurance premiums, so ask us about how you can save on your premiums by signing up for car insurance and home insurance from the same company.

 

Pay off your mortgage

 

Okay, so this one may not be possible. However, if you have the means to pay off the mortgage, your insurance premiums will decline. The reason for that is insurance companies find that those that own a home outright are more likely to take proper care of their home. That makes sense. But don’t worry if you can’t make this happen. There are many other ways to save money on insurance premiums.

 

Search around for new insurance annually

 

If you aren’t a new home buyer and already have a plan in force, you should shop around for a new plan, and should do so each year. Homeowners insurance premiums fluctuate, and you might find a new plan this year that is cheaper and better. Don’t automatically assume it’s best to roll over your insurance plan each year. Contact us at the time of renewal and we’ll see if we can find you a better, lower cost policy.