The home insurance guide for those moving to a new house.
Are you shopping for your dream house? In the midst of packing, planning, prepping, and signing, it’s important to keep insurance in mind throughout the home buying process. Most lenders require homeowners to purchase homeowners insurance. But, before you even start daydreaming on Zillow.com, it’s important to put this home insurance checklist to use!
Check your home insurance claim filing.
Get a copy of your loss history, such as a CLUE report from ChoicePoint or an A-PLUS report from Insurance Services Office (ISO). This is a record of home insurance claims you have filed. Make sure that the report is accurate and correct any discrepancies immediately, as the better your claim record, the less you may pay for insurance.
Check your credit rating.
Good credit helps you to find the right mortgage at a good rate as well as securing an affordable homeowners insurance policy. Get a copy of one or all of your credit reports and, again, comb through them to make sure there are no mistakes. If your credit is not as good as it should be, begin to improve it now.
Select the highest deductible you can afford.
The higher the deductible, the lower the premium. Since most people only file a claim every eight to ten years, you will save money over time and preserve your insurance for when it’s really needed.
Ask about available discounts.
Many insurance companies offer discounts for homes that have smoke detectors, fire extinguishers, sprinkler systems, and for those homeowners that bundle multiple insurance policies together.
Enquire about additional insurance.
Homeowners insurance is designed to protect the structure of your home, your belongings, liability cover, and any additional living expenses. Damage caused by flooding and earthquakes are not covered by standard homeowners insurance policies. For such protection, you’ll need to purchase additional coverage.