If you want to own your own home and save money doing it, you most certainly can. If you’re well-practiced in saving money for the things that are really important to you, then you already know how to save on your home, but you may not yet know how to save on your homeowners insurance. The absolute best way to save on your homeowners insurance is to reduce the amount of risk the insurance company is taking by insuring you. There are several ways to do this, and they begin before you even buy your new home.
Location
A million realtors have already told you that it’s all about location. Some of them mean that the resale value of your home will be better if you choose a good location, and others mean that your quality of life will simply be higher if you choose a good location for your new home. But very few realtors probably have homeowners insurance in mind when they pound the importance of location into your head. Location, however, can have a huge impact on your homeowners insurance costs.
First off, if you haven’t yet settled on even what part of the country you want to move to, consider moving to a lower-risk area that doesn’t have many hurricanes, tornadoes, or earthquakes. If you’ve always wanted to live near the beach, be aware that you’ll be paying a lot more for homeowners insurance. It might be best to live inland and just take frequent vacations with all the homeowners insurance money you’re saving.
On a more local level, find a neighborhood with a low crime rate. You can find lower crime rate neighborhoods even within large cities, and living in a neighborhood like this, even if real estate is more expensive, will not only keep your family and property safer but will also reduce your insurance costs. Also, homes that are closer to fire departments and fire hydrants will have a lower insurance premium.
Materials
Different home building materials do well in different environments. In a hurricane-prone area, brick and cement homes will be cheaper to insure, and in an area with frequent earthquakes, more flexible wooden homes may be cheaper to insure. If you’re unsure of what type of home is considered best in your area, ask an insurance agent.
Age
Sure older homes can be charming, but they can also come with a host of problems, including faulty wiring and century-old plumbing. If you want the feel of an older home without the requisite insurance costs, consider buying an older home that has been updated in the areas where it really counts and which has a good foundation and roof.
These aren’t the only ways to save on homeowners insurance. You can also find a home with a security system, or you can put one in yourself. Smoke detectors are another factor that insurance companies will look at when determining what to charge you for insurance. So as you’re buying a home, keep in mind not only the cost of the home but also the cost of the homeowners insurance it will bring along with it.
