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Consider the Cost of Homeowners Insurance When Purchasing a Home
When purchasing a home in Boston, it's always a good idea to consider the cost of homeowners insurance on the house you are looking at prior to buying it. There are several different ways in which you can estimate the cost of insurance and how much coverage you are going to need when you do purchase the home, which will give you an idea of the cost of the homeowner's insurance policy you'll require. Here are a few considerations that can save you money in the long run:
- You may pay less for homeowners insurance if you choose a home that has a professional fire department rather than a volunteer fire department. Also, you can save by selecting a home that is near a fire hydrant.
- If your home is newer and the electrical and plumbing of the home are fewer than ten years old, you may be able to save on your insurance.
- Homes in the East, such as Boston, should consider building with brick. This type of material is more resistant to weather, particularly wind.
These types of considerations can help you cut your homeowners insurance premiums by 15 percent. Another step you can take is to look at the Comprehensive Loss Underwriting Exchange (CLUE) report of the home you are considering purchasing. These reports contain insurance claim history on the home you are considering and may help you determine any problems you may have with the home in the future and what claims you may have to make on your insurance.
The area that you purchase your house in is important as well. If the house is in a flood prone area, you will need to purchase flood insurance. Flood insurance is provided by the federal government and you will typically spend about $400 a year on it.
Another area of concern deals with your personal possessions. Be sure to discuss the coverage that you will have on your homeowners insurance if your home is broken into or your personal belongings are destroyed in a disaster. Do keep in mind that most homeowners policies do not cover business equipment in your home and this can be a concern if you run a home-based business. An amendment can be added to your homeowners policy to cover this equipment. Homeowners insurance is a two sided decision. You want to keep it as low as possible, but you also want to protect your home and you belongings in your new home in Boston.
