If you a resident of Georgia and looking out for an insurance policy here are a few factors you may need to keep in mind while purchasing one:
The construction of the house: The material used to construct the building is a crucial determinant of the premium you will pay especially if you live in hurricane country. Ensure that brick is used adequately. If you're in an earthquake region however, newer homes built according to the current codes will better withstand an earthquake. So make sure that you are acquainted with these regulations.
The age of the house: Plaster peeling off the walls, mold on ceilings, wood floors, and other features on older houses cost more to repair and replace. A relatively older house may also add to the rise in premium.
Its condition: Any house which will need a good bit of fixing will also require more to be shelled out as insurance. The condition of the roof is especially important in this case.
The major systems: Check out the plumbing, heating and electrical systems prior to purchase. These can wear out, particularly in an older house thus becoming more vulnerable to fire or water damage.
Safety devices: These fetch you many discounts especially the smoke, fire, and burglar alarms, as well as strong doors, dead-bolt locks and window locks. Check whether insurance companies you speak with offer discounts and if so how much.
Extra features like swimming pools and wood-burning stoves will raise your premium.
Proximity to the local fire department: The closer you are to a fire station with a professional -- versus volunteer -- crew or if you have installed hydrants and water sprinklers, the better your chances of getting discounts. Once you find a house that you want to buy, take time off to learn more about its history. Ask the owner for a copy of the house's insurance loss history report. This will cover any claims in the past five years. Also, a professional inspection will uncover anything that will raise a red flag for insurance companies, such as water damage or termites and the condition of the electrical system, septic tank and water heater.
Look out for an insurance professional. Speak to family and friends for references.
Shop around for the best coverage and the best rates.
On having purchased your house and secured insurance, the III guidelines advise you to take the maximum deductible that you can afford.
With homeowners insurance premiums soaring and an increasing number of companies making their guidelines more stringent on the kinds of consumers and the items they'll insure, it's especially important to start looking for insurance and learning what factors will lead to higher premiums even before you begin house hunting.
National Association of Realtors in Georgia has illustrated the fact that rising homeowners insurance premiums and the lack of available coverage actually end up impeding the process of homeownership. As always the ones bearing the brunt are those with no credit history and existing homeowners who have water-related claims.
The Insurance Information Institute (III) says the average cost of homeowners insurance has been on the rise since 2000. Hikes have ranged between 30 to 70 percent.
Catastrophes like Hurricane Andrew and the Northridge Earthquake have triggered the increases as much as the problem of mold. This is common not just to Georgia but to many other states where tornados and thunderstorms are frequent occurrences.
Note
In an effort to aid homebuyers, the III introduced a checklist for potential homebuyers to follow when looking for insurance:
- Ensure that your credit report is correct – There are increased instances of credit histories being checked and used to determine whether a company will insure you, and, if so, at what rate.
- Make sure you have a copy of your loss history report, such as a CLUE report from ChoicePoint or an A-PLUS report from Insurance Services Office. This gives you a record of all the claims you have ever filed. If there is no history for you, it means that you have not filed any insurance claims in the past five years. The better your report, the better chance you'll have of obtaining reasonably-priced insurance on the house you buy.
- And if you are a renter, buy and update your renter's insurance -- it's helpful to have some insurance history even if you are a renter when you obtain insurance for your new house.
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