When someone applies for a mortgage loan and buys a house, homeowner’s insurance is a requirement. The coverage protects the lender, but it also protects the buyer in the event of a disaster. While homeowner’s insurance is mandatory, it doesn’t have to be expensive. Here, new buyers can get some tips on saving money on home insurance.
The easiest thing a first-time buyer can do is to bundle policies. Most people have auto, life and renter’s insurance; check with the Home Insurance Company in Austin TX to see if combining policies can bring additional savings.
Consider the Deductible
The higher the deductible on a homeowner’s insurance policy, the lower the monthly premium will be. If a loss occurs, the owner will have to pay more out-of-pocket costs before the insurance kicks in. However, a lower premium can allow the owner to start saving for emergencies. The maximum deductible is one percent of the loan amount, or $1000, whichever is greater. Consult a loan officer or insurance agent with Perdue Insurance Group for advice.
Checking with one’s current Home Insurance Company in Austin TX is a good place to start the comparison shopping process. However, informed consumers should look further in order to save money. If a buyer knows the going rate for homeowner’s insurance, they will find it easier to get coverage at a fair price.
Ask for Discounts
In some cases, a person can get insurance discounts based on his or her location, other insurance coverages or professional memberships. Some companies offer discounts if homes are equipped with safety features such as alarm systems. There are many discounts available, and not all are well-publicized; to get them, consumers must ask.
Check Credit Scores
A person’s credit score can significantly affect the rate he or she pays for homeowner’s insurance. Ask the provider whether credit score has an effect on monthly premiums, as scores can be brought up rapidly with simple fixes.
Searching for a new home can be an exciting process, but buying insurance is much less so. However, following these tips can put a buyer in the right position to make an informed coverage decision. Buyers can click here to learn how we can help.