- July 20, 2020
- Posted by: admin
- Category: blog
Buying your first home is no easy feat. If you’ve come this far, congratulations! It’s a milestone worth cherishing. We’re here to make the process easier by offering a few tips that you won’t hear elsewhere.
Make sure you stick to these, and the final deal will be a lot more financially viable and sound:
Home Insurance Is the Key!
Considering a property for purchase without any regard to the homeowners insurance is a cardinal mistake. When you’re moving to a new state, you need to familiarize yourself with the state’s insurance laws. Visit the government website and learn about the state-defined coverages, limits, and penalties.
It would help if you also inquired about the insurance agencies that operate in the area. If you’re new to a state, always choose an insurance service that’s open to guide you on the kind of coverage you need in a certain area.
For instance, the property crime rate in Indian Orchard was reported at 2,298 incidents per 100,000 residents, according to the FBI, in 2019. Only a local insurance service will be able to guide you regarding the required coverage limits that’ll help you mitigate your losses under such circumstances.
There are financial implications of the location that you’re considering. Always think for the long-term. Here are a few questions that you should ask yourself before sealing the deal:
Does the home have good resale value? Is the local real estate market strong enough? How did the neighborhood fare during the last housing crisis? Are there any good schools nearby? Would it be easy for you to commute to work? What are the prevalent utility rates in the area?
How does the neighborhood fare in terms of crime statistics (this could be a deal-breaker)? When it comes to finding details about the crime rates, don’t trust the neighbors or the real estate agents. Do your research and obtain the police reports for an accurate insight. The crime statistics also have a direct impact on your insurance premiums. If the burglary rate is higher, the homeowners insurance premium will also be higher.
Be Wary of The Credit Score
In one way or the other, this is no secret. Your credit score matters more than you think. Most homeowners assume that once the mortgage has been approved, the credit score won’t matter. After this point, they might become non-diligent with their payments again.
The truth is that many insurers also take your credit score into account. If there are too many negative inquiries on the report, the insurer will assume that you might not be able to pay your premiums on time. This will either result in your inability to get a policy or higher cost of insurance.
However, things at Western Mass Auto Insurance are different. Our home insurance agents will make sure you leave the office completely happy with the coverage plan you have. We will be glad to discuss your constraints and suggest a low-cost policy. Read more about our homeowners insurance policy Indian Orchard, MA here.