and it is easy to compare and evaluate multiple companies.
Instructions
Assess Your Insurance Needs
1. Do your insurance research now, then move in with confidence.
Start right away. After finding a home, there is a tendency to let the insurance search slide until mortgage details are finalized. Avoid the desire to take a break. You will need to look at several companies, getting at least 2 to 3 detailed quotes
2. Start a checklist of key features to use for insurance quotes (see Resources). For instance, you should note whether the home has access to public sewer and water, or whether it has a well and septic system. This makes a difference for insurance needs and costs. Look at the lender's value assessment for your home and see how the valuations break out for the home itself and any outbuildings, such as garden sheds or garages.
3. Assess your high-risk factors. Risk factors, like being in a flood zone, really inflate insurance costs. You can check federal flood maps to see your level of risk (see Resources). Insurers in areas with heavy storm and other damage in recent years have raised prices to cover their claims. In that case, a government-sponsored plan might save you considerable money. If there is no government plan, you may have to purchase a flood or storm damage policy in addition to your base plan homeowner's policy.
4. Determine your special situation and local zoning risk factors. Many localities require removal of in-ground oil tanks and many insurers will not insure them. Be sure to get any in-ground oil tank tested before you buy. Make sure wells, well equipment and septic systems pass inspections prior to finalizing your homeowner's policy. If you have ponds, lakes or streams on your property, check to see if local ordinances require you to maintain a certain level of water quality.
Improve home security to lower insurance costs.
5.Upgrades can save on insurance costs. Most insurance companies give discounts for improving the safety and security of your residence. Consider installing deadbolt locks, home security systems and alarms, smoke detectors, sprinkler systems and storm shutters.
6. Look at your leverage. Is your mortgage higher than the assessment of your dwelling? You may need to insure your home for the total cost of the loan since that is what you would owe the bank, rather than the cost of just rebuilding your home.
Find the Right Insurance Company
7. Contact your state's insurance department for their consumer guide to insurance. This is usually available on their website with rankings by area. Your state government's insurance rankings, if available, will save you a lot of time. Pick the companies that are competitive in your area and add them to your list for quotes.
8. Get referrals for insurance brokers and agents. Ask your real estate agent, mortgage broker, friends and family for referrals. Make sure your broker gets at least two or three quotes so you can compare them. Do not overlook your current homeowner insurance provider if your experience has been good. They may offer incentives to keep your business. No matter how you start, use your checklist when you contact insurance representatives so your quotes are comparable.
9.Consider only insurers with financial strength and a strong ability to pay claims. A.M. Best, Standard & Poor's and Moody's all rate insurance companies. Check out the ratings for your insurance company finalists before getting quotes to see if they are in good financial shape. If you are using a broker, ask to see ratings for recommended companies.
10.Ask about discounts. If you have car insurance or another policy with the same company, you may get a good discount when you also purchase homeowner's insurance from them.
11. Find out about personal property and personal liability coverage and riders. If you own expensive jewelry, home theater components or valuable collectibles, your homeowners insurance basic coverage will probably not be enough for full replacement of these items. You may need "riders" or additional coverage. You also need to ask about personal liability coverage. A personal liability policy will protect you from lawsuits such as someone falling on your front steps and suing you for damages. The higher your income and assets, the more protection you will need to shield yourself from loss.
12. Get quotes from at least your top two or three companies. Make sure the quotes are based on exact rebuilding costs. If your home contains granite countertops, tall walls, upgraded windows and upscale kitchen appliances you will want to be able to replace these items. Walk through the home with the company representative to be sure that person is taking note of your home's materials and features. Your credit history will likely be a factor in the pricing decision so if you currently have some credit issues, be sure to ask the insurers how much you can save when your credit improves.
13.Compare quotes and choose your insurance provider.
