In order to purchase a house, a mortgage lender may require you to have homeowner's insurance. The right policy can insure you in the case of theft, fire, flooding and other natural disasters and casualties. Being without sufficient insurance can leave you out in the cold without options if your home and valuables are destroyed. The amount of your homeowners insurance premiums depends on several different factors. The type of policy you want, what you want covered and the amount you want to pay for a deductible are all factors when determining your premium.
Ask your lender about the minimum requirements for a home insurance policy. Lenders will have their own set of requirements on what the policy should cover and the limits. They want to make sure their investment can be recouped in the case of disaster.
Make a list of the different factors about the home that will affect the premium. These factors include, the condition of the house, the age and value of the house, the amount you are borrowing and the valuable items that will be in the house that you want to list on the policy.
Determine if you live in a high-risk area. This is an area that is prone to natural disasters, such as floods, hurricanes and earthquakes. If you are in a high-risk area, you may need to add additional insurance to cover these natural disasters because they may not be covered by a regular policy.
Select a deductible amount. The more you are willing to pay for a deductible, the lower your premium will be. Don't just choose a high deductible in order to pay smaller rates upfront. Choose a deductible that you can afford. A good way to know what you can afford is to go over your expenses and budgets, or to go with an amount that you have readily available in a savings account.
Make a list of insurance companies that offer homeowners insurance in your area. Call around to the insurance companies and tell them you want a quote for homeowners insurance. Give them the information you notated from the previous steps. They will give you a quote and offer to set up your policy right there on the phone. Do not decide on a policy until you have gotten a quote from all of the companies to ensure that you are getting the best rate.
You can also get a quote by visiting the websites of insurance companies. Many major insurance companies provides free quotes after you have selected all of your options and provided your information in their online forms.
Check with the company that you currently have auto or life insurance with. Many times insurance companies offer discounts when you have several different policies with them.
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