Question:

How to buy homeowners insurance?

Answer:

First thing to do when you decide to buy homeowners insurance is to choose prospective insurers. Go around and take your time shopping for insurance companies. Check prices online but do not make lowest costs your priority. The service and stability of the insurance company will be your top consideration. It might be wise to see the homeowners insurance companies credit rating. When you have highlighted several insurers, collect their quotes.

A common mistake of first-time homebuyers is to include the value of the land in the property insurance. Do not do this. Your land cannot suffer loss or damage by fire, flood or theft and if you do include its value, you will be paying higher premiums than you intended to.

A homeowners insurance policy may include a special deductible if you live in a disaster-prone area. For example, windstorm deductible, if you live on the coast line. Usually, raising your deductible will get you percentage discount on your hazard insurance. A $1000 deductible may get you over 20% comprehensive insurance discount.

Usually when buying homeowners insurance you will get the best deal if buying homeowners and auto insurance from the same insurer - they will probably offer you a discount. If they don't, remind them about it and see if they agree.

Recommended helpful present and future homeowners links:
Why: Refinance to a fixed rate loan while mortgage rates are still low.
Link:
Why: Because FHA loans are insured by the US Federal Government they have very competitive interest rates and are easier to qualify.
Link:
Why: Know and protect your credit report and score.
Link: See All 3 National Credit Scores & 3 Reports Instantly, Online & Free
Why: Find your next home and save money.
Link: Search thousands of foreclosures. Free 7-day trial.
Link this QnA Print del.icio.us Digg
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
 Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA:

Common misspellings: mortage and morgage