Home Insurance Articles

How First Time Home Owners Can Tap Into Special Rates

2010-07-23

First-time home owners are often unaware of their options regarding home owners' insurance. Buying a home for the first time can be as stressful as it is joyful. First-time home buyers have looked carefully for the perfect home for themselves and their families. They have secured a home loan. They have gone through the inspection process and put down large amounts of money. So when it comes to home insurance, many new home owners are overwhelmed or anxious, even unaware that many insurance companies may offer them special rates.

There are several ways that first-time home owners can qualify for special rates, or even negotiate better rates with their insurance companies. First, new home owners should definitely shop around. Different insurance companies may be running rate specials or discounts for first-time home buyers. It would also benefit new home owners to shop around, not only to explore different rates and specials, but also to find a company or agent that fits their needs. The quality of customer service is an important part of purchasing any kind of insurance; recommendations from friends and family and good research can help new home owners find the best insurance for them and their new home.

Second, if first-time home owners already have auto or life insurance, they may want to look into purchasing home owners' insurance from the same company or insurer. Insurance companies often offer special rates to customers who have multiple policies with the company, especially if the original policy is in good standing. Some companies will even offer to take a percentage off of your home owner's insurance premium (as much as 15 percent or more) if you have two or more policies with them.

Third, making your home more damage-resistant may help you save money on your insurance or qualify you for a special rate. This most likely involves making a home as disaster-resistant as possible. Home owners can do this by adding improvements to their home such storm shutters or storm windows, shatter-proof glass and roof reinforcements. In older homes, new home owners might be able to update electrical wiring in order to save on their insurance or modernize their heating and cooling systems in order to qualify for a special rate.

Securing a new home may offer modest special rates for first time home buyers. Installing security systems is one way in which home owners can save on their insurance. Having smoke detectors, fire sprinklers and dead bolt locks can also lower insurance costs. Of course, you will want to make sure that the cost of such items does not outweigh the savings on your home owner's insurance.