After you have purchased your dream home, what’s the next best thing to do? Well, it pays to protect your investment. Getting your property insured is protecting yourself financially in case disaster strikes. Burglary, Fires, Earthquakes, Hurricanes, Storms, or Floods are things we cannot control and can certainly happen at any time.
If any of these unfortunate events result in loss or damage to property, bodily injury or loss of life, our homeowner’s insurance policy will give us the chance to move on and rebuild without draining our financial resources.
Insurers set the premium rates based on how much they think they are going to spend to rebuild your house in case something bad happens. Be prudent though as Real Estate Insurance is every homeowner’s best friend. Here are 3 things you need to consider before choosing a Real Estate Insurance.
Location affects your premium
When your home is located in disaster-prone areas, expect to pay higher insurance premiums. Higher premiums can offset the risks your insurer has to cover in case a claim is filed. Higher premiums can also mean lower deductibles. A deductible is the amount of money you have to shell out first before your insurer pays for the remaining cost based on your insurance coverage. Lower premiums mean higher deductibles.
Get a C.L.U.E.
CLUE stands for Comprehensive Loss Underwriting Exchange. The CLUE report can also affect how much your premium will cost. The lesser the insurance claims made, the lower your premium. It contains historical data of insurance claims made on the house you just purchased in the past 7 years. It tells you how the house was maintained or what are the risks that are most likely to happen.
The size, age, features and value of your property dictate your insurance premium rates
Bigger or older houses will cost more to insure. One way to bring down insurance cost is to install security systems or fire sprinklers if your house is located where burglaries are common or too many fire incidents. If your property has a swimming pool, it can also raise your rates as it has the potential for accidents or loss of life in case someone drowns in your pool.
With all things considered, getting an insurance policy is just like buying a car or house. You need to assess your needs and budget. Shop around and consider your options before deciding which is the best one for you as you can only make a claim once for every 8 to 10 years.