As previously posted, we are finally purchasing our first house. One of the many things to deal with in homeowners insurance. Here's a couple things that I've learned so far.
*Don't let your mortgage company issue you insurance, you can get it much cheaper elsewhere.
*Shop around, the rates vary company by company. Up to 40%.
*Combine your auto insurance with your home. Most companies will give you discount. $200+
*Don't be shocked when they issue you only $250K on a house that you paid twice that amount for. They are insuring only the cost of house, not the land.
*Some insurance companies will not insure older homes unless the plumbing and electrical has been upgraded and foundation has been bolted. We also found out that one company will not insure houses with flat roofs.
*There is a Building Ordinance option that pays a percent of the insurance to bring the house up to current building codes. This is usually 10%, but can be increased. This is especially important on older homes that would need a lot more upgrades to current standards.
*Now that you're a homeowner, you might want to increase your auto liability limits, now that you have an asset worth suing for.
*The bigger the deductible the lower the cost. But one insurance agent mentioned that some mortgage companies will not allow you to go over $1000.
*Also as one agent said it " This is insurance for major repairs, not a home maintenance repair" Meaning that only use it when something major hits. Any claim will likely increase your rates. So when your water heater blows and causes $1200 dollars in damage. Don't automatically think that you'll file a claim and only get it repaired for $200. That claim could end up costing you more in the long run in higher premiums. I read some horror stories online whereby people only called the insurance to see if the damage was covered and it was filed as a claim. Regardless if they actually submitted it.
Here's a link to a 2008 JD Powers rating of insurance companies.Ratings
I think thats most of it for now. Hope it helps. Please add anymore advice, cause I'm still learning too.
