Insurance Checklist for New Home Buyers in Massachusetts
Buying your first home is an exciting experience. It can also be intimidating and a little scary. Finding ways to save money during the process is a major priority. Purchasing an insurance policy that will protect your new investment while still saving money, is a big step in the right direction. This insurance checklist can help you save money on essential purchases and help protect your future.
Make Early Decisions That Will Pay off in the Future
If you’re looking for a new home but not quite ready to buy, now is the time to take steps in preparation for the big purchase. Learn your current credit score and take steps to improve it if necessary. Pay off credit cards monthly and avoid late payments on current bills. Create a new home buyer’s insurance checklist.
If you’re currently renting your living space, get renter’s insurance. Insurance companies look at your insurance history when determining your home insurance rates. A claim-free renter’s insurance history can mean discounts up to 25% on your first homeowner’s insurance policy. Additionally, renter’s insurance is inexpensive and can help you avoid potential financial burdens in the event your property is damaged or stolen.
Don’t Leave Your Insurance Purchase Until the Last Minute
Purchasing insurance is an important step ion the insurance checklist when buying your home. However, many new home buyers get busy searching for the perfect home, securing a mortgage loan, and negotiations. Purchasing a homeowner’s policy gets pushed back to the last minute. This is a poor decision because it significantly narrows your options.
Your homeowner’s insurance policy is more than just a step in the process. It provides protection for your home, possessions, and your family. When you don’t have time to choose the coverage you need, you could lose hundreds of dollars by not taking advantage of savings. Even worse, poor coverage will leave you underinsured, which could cost you thousands of dollars in the event of a loss.
Schedule a Home Inspection
No matter how nice a home looks, your home inspection is more than a formality. A home inspection will help you discover important information about your home’s foundation, plumbing, roof, and electrical system. A home in disrepair can cost you a lot of money over time. Your home inspection can alert you to hidden problems, like faulty outlets, and allow you to plan repairs that will help you avoid additional damage. The results of your home inspection can also give you an edge during negotiations or help you save money on your home insurance policy.
Learn Ways to Save on Your First Homeowner’s Insurance Policy
There are a variety of ways to save money on your homeowner’s insurance. Making a careful choice will save you money now and in the future. It will also help you determine the types of coverage you need to keep your home and possessions properly protected. Use these tips to save money on your first homeowner’s insurance policy.
- Seek multi-policy discounts by getting all of your policies in one place
- Look for new home discounts
- Talk to an independent agent about customized policies
- Install safety features like sprinklers and smoke detectors
- Get multiple quotes
- Install security upgrades
Don’t Assume Your Insurance Will Be the Same as the Current Home Owner
It’s common for buyers to ask the current homeowner about the cost of utilities and property taxes to get an understanding of the cost of living. Unfortunately, this tactic isn’t effective when it comes to purchasing home insurance. There are a lot of factors involved in the determination of your home insurance costs. While the location and age of the home are important elements, your personal information and history are also a crucial part of the puzzle.
Use an Insurance Agent Instead of a Mortgage Broker
Many mortgage lenders and banks offer mortgage insurance. While this seems like a convenient way to get two things done on your insurance checklist, taking advantage of this offer may cost you in the long run. Lenders offer insurance to protect their own investment in the event of a loss. These policies are usually based on average clients. If you are under 35 and in good health, you could potentially get a significantly cheaper policy.
An independent insurance agent works with a variety of insurance companies to find policies that match your needs while saving you money. This means you can get the coverage you need without paying for extras you don’t. Additionally, independent agents are typically familiar with the local area and have the ability to help you determine the coverage you really need for your new home.
Learn the Details
Understanding the details of your home as it relates to insurance costs, could you plan for the total cost of your insurance and get the coverage you need. While your personal information plays a part in your insurance cost, there are many factors about your home to consider as well. Learn these facts about your home before talking to your insurance agent.
- Age of the home
- Condition of the roof
- Proximity to the coast
- Location of the fire department
- Quality of construction
- Flood risks
- History of earthquakes
- Special features that may be a liability like swimming pools
Learn More About Completing Your New Home Buyer’s Insurance Checklist
Your homeowner’s insurance policy is an important layer of protection for your home. Taking the time to make the right choice provides you with the proper amount of coverage and could save you a significant amount of money. If you’re seeking a home in Massachusetts, get in touch with LoPriore Insurance Agency to learn about our personal and commercial insurance policies. Our motto is insurance that fits your lifestyle which means our independent agents work hard to personalize policies that provide the coverage you need at a price you can afford. Don’t leave the future of your new dream home to chance. Visit an independent insurance agent to learn about the features and costs of your first homeowner’s insurance policy.