Buying a new home for the first time can be exciting and nerve-racking at the same time because there are many aspects that you need to consider. Home insurance is one of these things. Selecting a reliable insurance company and setting up proper insurance coverage for your home can be complicated, which is why we have listed a few useful insurance tips for first-time home buyers.
7 Insurance Tips for First-Time Home Buyers
1. Use an Insurance Broker
You need to consider the factors that affect the insurance premium amount, such as the age of the building and location or neighbourhood. It also helps to compare different home insurance quotes to determine the best one. Insurance brokers are licensed professionals who understand all the essential aspects for determining the value of your home and can come up with a comprehensive policy designed for your individual needs to protect your assets.
2. Make Sure Your Home is Up to Date
If you want to purchase an older home, make sure that it is updated. This is because most insurance companies will ensure that the features such as the roof, heating, plumbing, and electrical wiring are proper before providing insurance coverage.
3. Pay Attention to the Heating System
The make and age of the oil tank in your home can impact your home insurance policy. Most insurance companies provide coverage if the oil tank is made of fibreglass and is less than ten years old. If your home has a heat pump or an electric heater, you could also be eligible for certain discounts.
4. Inquire About Credit Score
If you have a good credit score, you could be eligible for significant discounts on home insurance. You can ask your insurance broker to run a soft credit check to know if you qualify for any discount on the premium amount.
5. Get a Home Inspection
Having your home inspected can ensure that the house you are looking to purchase is in excellent condition. It can also help you avoid unforeseen, additional repair expenses in the future. Do not be in a hurry to close the deal and be sure to get your home inspected before making the purchase.
6. Have Your Mortgage Pre-Approved
Getting your mortgage pre-approved before you start looking at properties is a wise idea. However, remember that the approved amount is based on your income and the maximum that the bank believes you can afford to pay for your property. It is not the final amount that you should pay as it does not cover other expenses such as the repair costs or any other emergency expenses.
7. Opt for Bundling Your Insurance Policies
You can save up to 15% on your premium amount if you choose to bundle your home and car insurance policies together with the same insurance company. When looking at home insurance quotes, be sure to ask your insurance broker if they offer such discounts.
We Can Help You Get an Accurate Home Insurance Quote
Orr & Associates is a well-known insurance company in Ontario. Our aim is to provide reliable services to our customers and ensure that they have adequate protection against any damages. We have qualified and licensed insurance brokers who work towards understanding your needs to come up with the best possible solution in the form of a suitable insurance policy.
If you are looking for a home insurance quote, we can help you. Be sure to give us a call at 1-866-292-2592 (1-866-292-2592) to discuss your needs.