While you are shopping for a new home, you may be interested in discovering the crime rate in the area, where the local schools are, and how far the commute is from work—but you should also be evaluating the insurance rates in each of the neighborhoods you consider.
Choose Your Neighborhood Based on Insurance Costs
When looking at homes, you may have certain neighborhoods in mind based on their proximity to school and work, but each neighborhood has its own potential home insurance costs that you should also consider. Your home insurance agent can help you narrow down your neighborhood choices even further by giving general rates for the homes in each so you can avoid wasting time in neighborhoods tied to high insurance premiums that exceed your budget.
It’s important to note that these will be estimates, not guarantees. But they can give you an idea of what you will need for liability, contents and property coverage as well as whether or not you will need flood insurance coverage.
The many factors that will help your agent in building the estimate include:
- Whether you are looking for a house with a pool or Jacuzzi
- The neighborhood crime statistics
- What kind of pets you plan to have
- What your estimated contents value is
Check Insurance before You Buy
It’s important to understand your potential home insurance costs before you buy since the inability to afford insurance is not an option when you are a new home owner, because not only will your lender require it, you will also want to have it to protect your new, expensive asset. In order to set yourself up for a comfortable future, you must live within your means and since home insurance is a financial obligation, it too must fit within your means.
Whether you are beginning to narrow down your home choices, or just getting started, give us a call to get potential rates for your home insurance coverage so that you can more accurately project your total monthly costs. We can also discuss increasing your life insurance death benefit to accommodate your new loan and the need for an umbrella policy to cover your home and auto liability risks.
To learn more about Home Insurance contact us 800-220-5582 or get a free Michigan home insurance quote.