Real Estate: Homeowners Insurance
In almost every homebuying instance, homebuyers are required to buy homeowners insurance for their real estate purchase. This is because both the owner and mortgage lender need protection in case of damaged property from natural disasters or human-caused destruction. But many homeowners are understandably concerned over how much their insurance will cost, and they want to make sure they don’t get taken advantage of. While there is no set cost because every case is different, here are some factors that can help you figure out whether or not you’re getting a good price.
Factor #1: The Size of Your Home
The price of your insurance premium is always impacted by the type and size of your home – this includes the square footage, the age of your home, and the kinds of materials that were used to build the structure (so that it’s easier to assess how likely damage to the home would be). You should also be aware of how recently your home has been renovated and if there have been any recent additions to it – this will impact the insurance company’s assessment of how much it would cost to rebuild your home in the case of a disaster. The larger your home and the more expensive the renovations and materials are, the more expensive your insurance policy will be.
Factor #2: Fire Protection
If your home is near a fire station and in close proximity to a fire hydrant, it’s much more likely that your home would be saved if a fire occurred. Because a good location fire-wise means less damage to repair your home, it also means your insurance can be lowered – so make sure you’re aware of where you are in relation to these things – it could save you a decent amount on your premiums.
Factor #3: Regional Disaster Characteristics
If you live in a region that is prone to hurricanes, tornadoes, and other potential natural disasters, your insurance costs will definitely be increased to cover these potential risks. Be sure to keep in mind that earthquake and flood protection are 2 natural disaster categories that are not included in standard policies, so if you live in an area prone to these things, you’ll have to pay higher premiums.
Factor #4: Local Crime Statistics
Homeowners insurance policies cover damage and losses to your person property from human-caused damage like theft or vandalism, so if the local crime rates in your area are higher, your premium price could increase. If you’re worried about getting taken advantage of when it comes to getting your homeowners insurance questions answered, just do your research and remember these factors – it will be hard for anyone to take advantage of you when you already know how it all works!
