Understanding Insurance Policies

Understanding Insurance Policies

4 Important Homeowners Insurance Considerations To Make When Purchasing A Home

Samantha Reynolds

If you are in the market to purchase a new home, you not only want to think about whether or not your family is going to be happy there. It's also important to consider all costs, including homeowners insurance costs. This is going to help you determine whether or not you can actually afford the home. Here are four important homeowners insurance considerations to make:

  1. Location Makes a Difference: The area in which your home is located makes a big difference in how much you are paying for homeowners insurance. For example, if you live in a coastal area, you are going to be paying more because the risk of damages to your home is higher due to high winds and potential flooding. Your homeowners insurance will also be more expensive if you live in a fire zone or flood zone. 
  2. You Might Need Flood Insurance: Even if you don't live in a flood zone, there is still a chance that you are going to need flood insurance. When you are considering a home to purchase, think about talking to the neighbors about whether or not they have ever experienced flooding or a situation that was close to flooding their home. They will be more honest with you than the seller of the home will be. 
  3. Swimming Pools Increase Rates: Keep in mind that when you are looking at a home with a swimming pool, your insurance rates are going to be higher. This is because swimming pools are a huge liability. However, if you want a swimming pool, you don't have to spend too much time worrying since there are ways to lower the costs by making your swimming pool safer. This would include adding a safety fence around the pool. If the home already has this, then that's a bonus to knowing that your homeowners insurance rates are going to be lower, plus you don't have to pay to have one installed yourself. 
  4. The Claim History is Important: Before purchasing a home, it's important that you go over the claims history of the home. All claims that have been made by previous owners will affect your rates. If the home has had many claims, then your homeowners insurance is going to be much higher. This is also a red flag that there are potentially still some damages to the home that haven't been fully resolved after a claim has been made. 

When you know these four important homeowners insurance considerations to make when purchasing a home, you can be sure that you purchase a home that you can truly afford. 


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About Me
Understanding Insurance Policies

After I moved out of my parent's home, I started learning more and more about insurance policies. I was involved in a bad car accident, and I ended up working with my car insurance company as well as my medical and dental insurance companies. I paid my premiums and enjoyed coverage, but I didn't really understand how the entire insurance claim process worked. I wanted to make this blog to help other people like me to learn more about insurance coverage. Check out this blog for more details on insurance coverage, how to file a claim, and what you should expect throughout the shopping process.