Insurance Factors to Consider When Buying a New Home

Remember to Consider Insurance When Purchasing a New Property

  Your house is likely to be the most expensive thing you will ever buy, and your mortgage will probably be the largest financial commitment you'll ever make. So, it stands to reason that you'll want to make sure you protect yourself and your home should the worst happen. Even before you're house hunting, you should be aware that you will most likely need to purchase homeowners insurance in Beaumont, CA to protect your property. Take a look at insurance factors to consider when buying a new home.  

• Location matters

Along with size, construction type, and overall condition of the house, location plays a large role in the cost of insurance and type of policies available. Homes that are located near fire departments (and even fire hydrants) are likely to cost less to insure. If you are nearer the coastline, you can expect to pay a higher premium for that idyllic spot near the sea.  

• Consider flood insurance

Damage from flooding isn't covered by standard home insurance policies, which means that you could be on the hook for any flooding damage to your property and possessions. Even if the house is outside of a flood zone, remember that properties anywhere can flood.  

• Consider earthquake insurance, too

In California, it's wise to consider earthquake insurance. Since earthquake damage isn't covered by standard policies, you will need a separate rider to obtain this protection. The cost of premium will vary by location, insurer, and type of structure being covered.  

• The home's history matters

If the previous homeowners filed a home insurance claim, it's a good idea to know about it. A claim filed for the property in the last five years could cause your rates to inch upward, even if you didn't own the home at the time. All of this information is summed up in a database called Comprehensive Loss Underwriting Exchange, or CLUE. If you are looking to buy a home and want a copy of the CLUE report, check with the sellers.   Are you ready to get started on the right homeowners insurance for your needs? Visit the team at Little & Sons Insurance Services to get started!