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If you’re new to homeownership, one of your first expenses is homeowner’s insurance. Not to be confused with mortgage insurance, your homeowner policy protects you in the event of a catastrophe.
The cost of your home is only one factor in an extensive list of how insurance companies calculate premiums. Just like with car insurance, location plays a big part, as does age and construction. Then there’s your credit score and claims history. Here’s a breakdown of the factors that most determine the cost.
A few other things impact the premium too. If your credit score is low, typically the insurance company asks for more money upfront and a higher premium. You’ll also pay more if you made multiple claims within the last five years. Of course, if you’re a first-time buyer this wouldn’t apply to you. Coverage for your personal property increases with the value of that property. If you own expensive jewelry, several computers or electronics, plan to pay more to cover them.
You can reduce premium costs by installing a security system, taking care of maintenance items, replacing major systems (wiring, plumbing, HVAC) and updating the roof. For more ways to learn how to reduce your insurance costs, ask your real estate professional for advice. Be certain to shop and compare prices and coverage too.
Haven Realty is a group of diverse professionals driven to ensure our client needs are met with positive results! We ensure that you are an informed consumer whose expectations align with current market trends. As client advocates we represent buyers & sellers, generate market analysis for owner occupants, investors or developers and can provide funding channels to personally shepherd you through every stage of the transaction type including primary residence, second home, pied-a-terr, investment property, estate or short sale. You will benefit from our experienced network of industry referrals including attorneys, lenders & home inspectors. The combination of broad technological outreach and intimate spheres of influence enable us to tap the most appropriate sources for fulfillment & compliance at every stage of the deal. Catherine, Dorothy, Liz and myself look forward to working with you. Tell us about your Real Estate needs and we will help you to achieve those goals. Jane C. Hoffmann