Home Buyer Insurance Guide

Before hunting - make yourself an economically desirable buyer.

1. Check your credit rating

A good credit history helps you get a mortgage at a more competitive rate and can also qualify 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 satisfactory, it is time to start improving.

2. Protect yourself through the renter insurance policy

If you rent an apartment or home, use the renter insurance policy to protect yourself. This way, if a disaster strikes, your tenant's insurance can help protect your down payment in order to buy a new home and show a useful insurance history to your prospect's insurance company. Go buy your first home.

House hunting

When you search for a new home, be aware of the physical characteristics of the home - its location, size, construction and overall condition - that may affect the cost, choice and availability of home insurance. In some cases, features such as gorgeous stucco or near the shoreline can make the house more expensive or more difficult. Some factors to consider when buying a home are:

3. Location and quality of the fire department

Houses located near fire departments with high ratings and permanent staffing usually cost less insurance. The same is true for houses with fire hydrants nearby.

4. Close to the coastline

Houses near the coast are usually more expensive than inland houses. They may also require a separate storm or hurricane deductible.

5. The age of the family

While sturdy, older homes may be beautiful, ornate features such as ceiling molding, plaster walls and wooden floors can be expensive to replace and increase insurance costs. Electrical and plumbing systems can become unsafe over time, especially in the absence of maintenance.

6. Roof condition

The new roof not only makes you and your family safer, it is also important to insurance companies. Be sure to check the condition of the roof. Depending on the type of roof and the materials you make, you can even get a discount on insurance.

7. Construction quality

Find out if the home has been updated to meet current building codes. Houses built with elaborate craftsmen and houses built to meet modern engineering and building codes may be better protected against natural disasters.

8. Flood risk

The damage caused by the flood is not in your standard home insurance policy. If you are buying a home in an area at risk of flooding, you should consider purchasing a separate flood insurance policy.

9. Swimming pool or other features

If the house has a hot tub, swimming pool or other special features, you may need more liability insurance. You may also want to consider an umbrella policy to provide additional protection when your property is harmed and you decide to take action.

Before you bid on your home

Take precautionary measures to understand the history of the house, the status quo, potential problems, etc.

10. Check the loss history report

Ask the current homeowner for a copy of the housing loss history report. The homeowner can obtain a Comprehensive Loss Coverage Exchange [CLUE] report. These reports document the type of loss the home can provide useful information. For example, if there is a water damage claim in the home, you must find out the cause of the damage [such as a squib] and if it has been properly repaired. On the other hand, hail or winds that are triggered in the new roof claim that houses are more powerful and attractive from an insurance perspective.

11. Check the house

You need to be inspected by a qualified home inspector to get a mortgage. Meet the inspectors and make sure they check the general condition of the house:

Water damage, termites and any other type of infestation
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  Check electrical systems, pipes, septic tanks and water heaters
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  Show you potential problems
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  Carefully check if past problems are fixed

Remember:
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  If the inspector asks, your insurance company will also.

Learn if there are underground storage tanks because many insurance companies do not make policies for families with homes.

12. Estimate maintenance costs

The standard homeowner insurance policy does not cover losses caused by negligent care of your home. Routine maintenance is your responsibility as a homeowner, so be sure to include these costs in the overall price of your home.

13. Call your insurance professional

Don't consider homeowner insurance before the last minute, don't worry about asking for estimates for multiple homes. Understand the eligibility of the home and get a premium estimate. The sooner you talk to your local insurance agent, the smoother the process will be. If you are uncomfortable with the cost of insuring a particular home, look for a home that is more suitable for your financial situation.

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Orignal From: Home Buyer Insurance Guide