Before shopping for a home: Prepare to be an economically desirable buyer.

1. Check your credit rating

Having a good credit history helps you obtain a mortgage at a more competitive interest rate and may also qualify you for a good credit discount on your insurance. Get a copy of one or all of your credit reports. Make sure they are correct and report any errors immediately. If your credit is not as good as it could be, now is the time to start improving it.

2. Protect yourself with a renters insurance policy

If you rent an apartment or house, protect yourself financially with a renters insurance policy. That way, if a disaster strikes, your renters insurance can help protect the down payment you’re saving to buy your new home, as well as show your prospective homeowner’s insurer a helpful insurance history when you go shopping for your first one. home.

While looking for a house

As you search for your new home, keep in mind that the physical characteristics of the home – its location, size, construction, and general condition – can affect the cost, choice, and availability of home insurance. In some cases, features like ornate plasterwork or proximity to the coast can make securing a home more expensive or more difficult. Some factors to consider when buying a home are:

3. Location and quality of the fire department

Homes that are located near highly qualified fire departments and with permanent staff will often cost less to insure. This is also true for houses that have a nearby fire hydrant.

4. Proximity to the coast

Homes located near the coast will generally be more expensive to insure than those further inland. They will also likely require a separate windstorm or hurricane deductible.

5. Household age

Although an old stately home can be quite beautiful, ornamental features like crown molding, plaster walls, and hardwood floors can be expensive to replace and can add to the cost of insurance. Plumbing and electrical systems can become unsafe over time, especially due to lack of maintenance.

6. Roof condition

A new roof not only keeps you and your family safer, it is also important to the insurance company. Be sure to check the condition of the roof. Depending on the type of roof and the material it is made from, you may even qualify for an insurance discount.

7. Construction quality

Find out if the home has been updated to meet current building codes. Homes well built by careful craftsmen and those built to meet modern engineering-based building codes are likely to better withstand natural disasters.

8. Risk of floods

Damage caused by a flood is NOT covered by your standard home insurance policy. If you are buying a home in a flood risk area, you should consider purchasing a separate flood insurance policy.

9. A pool or other special feature

If your home has a hot tub, pool, or other special feature, you will probably need more liability insurance. You may also consider a general liability policy to provide additional protection in the event that a person is injured on your property and decides to take action.

Before bidding on the house

Take precautions and learn about the house’s history, current condition, potential trouble spots, etc.

10. Check the loss history report.

Ask the current owner for a copy of the home’s loss history report. Homeowners can obtain a Comprehensive Loss Underwriting Exchange (CLUE) report. These reports are a record of the type of loss in the home and can provide helpful information. For example, if there was a claim for water damage in the house, it is essential to find out the cause of the damage (such as a burst pipe) and if it has been repaired correctly. On the other hand, a hail or wind claim that resulted in a new roof makes the home stronger and more attractive from an insurance perspective.

11. Have the house inspected

You will need to have a certified home inspector inspect the home for your mortgage to be approved. Meet with the inspector to make sure he checks the general condition of the house to:

Water damage, termites and any other type of infestation.

Check the electrical system, plumbing, septic tank, and water heater.

Show you where potential problems can arise.

Verify that past problems have been fixed

Remember:

If the inspector asks questions, your insurance company will, too.

Find out if there is an underground oil storage tank, as many insurance companies will not issue policies for homes that have one.

12. Estimate maintenance costs

Losses caused by neglecting the proper care of your home are not covered by standard homeowners insurance policies. Routine maintenance is your responsibility as a homeowner, so be sure to factor these costs into your total property price.

13. Call your insurance professional

Do not leave to the last minute thinking about home insurance and do not worry about requesting estimates for more than one house. Find out if the home will qualify and get a premium estimate. The sooner you speak with your local insurance agent, the easier the process will be. If you are not comfortable with the cost of insuring a particular home, find one that best suits your financial situation.