Purchasing Lloyds TSB house insurance protects new homeowners from major expenses like damage sustained in severe weather. It is also required when the buyer purchases a home and is factored into the monthly mortgage payment. Since the home owner, and not the mortgage holder, is responsible for choosing a home insurance company, he or she should take the time to research and get price quotes from at least three companies before making a final decision. There are several factors to consider in this decision, including risk factors, deductibles and more.
Determining Risk Factors
If a home is located in an area with a known risk factor, such as flooding, the premium will automatically be higher. Some standard homeowner’s insurance policies won’t cover such risks, and the new home owner will need to purchase a separate flood insurance policy. Once a risk factor has been determined, the person searching for a policy should inquire with each company if this particular risk is included in the general policy.
Understanding the Property Evaluation
When a new policy is written, the underwriter will assign a value for the total and partial replacement of the home. The customer should always question how this figure was arrived at, and if there is anything he or she can do to increase the home’s value to the insurer while reducing his or her own premium at the same time. One situation that makes a big difference in how value is determined is whether the house requires a separate septic system or is hooked up to receive water and sewer services from the city.
How to Lower Home Insurance Premiums
Prior to taking ownership of the home, the new home owner can make some changes which will make the home safer and subsequently lower the cost of the monthly insurance premium. Security systems, smoke alarms and storm shutters are typical examples of how the home can be made safe from the start. They all reduce the risk to the insurance company, and as a result, they are inclined to lower premiums for the policy holder.
If the home owner holds auto insurance or other policies with the same company, he or she may be entitled to a multi-policy discount. Another way to lower the monthly premium is to choose to pay a higher deductible if a claim ever does need to be made.
How to Find the Right Insurance Company
Rather than searching through dozens of company websites or spend all day making phone calls, home owners can save a lot of time by requesting a consumer guide to insurance from the insurance department of their state. This guide provides financial and customer service ratings for every insurance company in the state. From this list, the home owner can choose three or more to contact for rate quotes.
Other options for the home owner to find a new home owner’s insurance company is to ask for referrals from his or her real estate agent, the bank holding the mortgage or word of mouth from family, friends and work associates.