5 Insurance Tips For First Time Homebuyers

Buying your first home is a big step! It’s both exciting and nerve-racking, and there are so many things to think about that didn’t come into play when you were renting. Home insurance is one of those things. When calculating your monthly expenses, such as your mortgage payment and property tax, make sure to factor in your insurance costs as well.
Setting up the best insurance coverage for your home at the lowest price available can be challenging for seasoned home-owners, let alone newbies. If you’re thinking about buying a house or looking for insurance for your new home, keep these five tips in mind.

1. Use an Insurance Broker

Home insurance can be complex – there are many different coverages to consider, and many factors that can affect your insurance premium, such as the age and location of your home, the type of heating you have, your proximity to a fire hall, and the list goes on.

Insurance brokers (like the ones at Cheep Insurance!) are licensed industry professionals who understand how to value your home and what types of coverage would be best for your unique situation. They are also able to compare pricing from many different insurance companies so they can find you the best price for your unique needs, apples to apples.

2. Make Sure Your Home is Up-to-Date

If the house you’re looking at purchasing is older, many insurance companies will be looking to ensure certain features have been updated in the last 25 years before they’ll agree to provide coverage. These features include your roof, plumbing, heating, and electrical. This is something you’ll want to ask your real estate agent about when purchasing your home.

3. Pay Attention to How Your Home is Heated

Many homes in Nova Scotia run on oil heat, and the age and make of your oil tank can have a big impact on your home’s insurability. Most insurance companies will provide coverage if your home’s oil tank is less than ten years old and either double-bottomed or made of fiberglass. If your home has electric heat or is heated by a heat pump, you could be eligible for discounts.

4. Ask About Credit Scoring

Many insurance companies will offer significant discounts on home insurance if you have a good credit score. Giving your insurance broker permission to run a soft hit on your credit can give you up to 60% off your insurance premium! Contrary to what many people think, running a soft hit on your credit score does not impact your credit rating.

5. Bundle Your Insurance Policies

If you bundle your home and car insurance policies with the same insurance company, you can save up to 15% on each policy. Many sure you ask your insurance broker about this when setting up your home insurance.

If you’re looking for advice about insurance for your new home, please don’t hesitate to reach out to the Cheep Insurance team. We are more than happy to advise you on coverage options and compare pricing from different insurance companies for you. We have the largest selection of insurance companies in Atlantic Canada, so we’ll be able to find the best price available for your unique needs.