If you are shopping for a new home, you are likely preparing yourself to have a 15-year or 30-year mortgage. However, your mortgage will not be your only monthly expense that you will have the entire time you live in your new home. You will also have your homeowners insurance premium, which can definitely increase your expenses each month significantly. This is why it is important to keep the costs of your insurance rate in mind when buying a new home. A few great ways to lower the costs of what your new insurance policy will be are to shop for a home with the following:
Located in a Safe Community:
When insurance providers review your application, they will take a few things into consideration. One of these things being the location of your home. If your potential home is located in a community with a high or escalating crime rate, then you could see higher insurance rates, as your insurance company may believe you are a liability for them to cover because of the higher chance of theft.
Located Near a Fire Station:
If your home catches fire and you live within 2 miles of a fire station, then you are less likely to experience major damages than someone who lives 10 miles away. Insurance companies will take notice of your location to a fire station and see that the risk of high damage is lower, which will lower your home insurance rate. So, when shopping for a new home, keep the distance to the nearest fire station in mind.
Not Prone to Weather Damages:
Some parts of town can experience more damages and poor weather conditions than others, and homes that experience floods and fire disasters can obtain higher insurance rates due to their liability to the insurance company. So, while shopping around, be sure you know which parts of town struggle during hurricanes or dry weather seasons. This can help you save money on your insurance policy and ensure you buy a home that is safe and reliable all year round.
Applying these tips when shopping around for your new home is a great and effective way to reduce the costs of what your new insurance rate will be, which will help save you a great deal of money in the long run. You can be sure that once you are in your new home, you can definitely afford the new mortgage costs that come with it. Contact companies like Olympic Northwest Insurance to further discuss your individual situation and how you can get the bet premiums.