For a first-time homebuyer, the whole process of buying a home and obtaining homeowners insurance coverage can be incredibly overwhelming. Consequently, most first-time buyers tend to give little thought to the latter process.
This is a big mistake because the median home cost in Lancaster, CA, is about $290,000, whereas the median home cost across the rest of the U.S. is around $231,000, as reported by BestPlaces.
This essentially makes homeowners insurance a no-brainer. In essence, a homeowners insurance policy protects your home and personal possessions against named perils. The risks include, among others, fire, weather-related damage, and third party property or bodily injury. Of course, finding the right home insurance can be a real challenge. Here are some tips to get you started:
Tip# 1 – Use an Independent Insurance Agent
As stated above, the process of finding the right homeowners insurance can easily overwhelm you. Fortunately, instead of requesting and comparing home insurance quotes from multiple carriers, you can outsource the task to an independent insurance agent. Besides helping you compare similar homeowners insurance quotes from different insurers quickly, an independent agent can give you insights into other key aspects of an insurance company including, among others:
Tip#2 – Improve Your Credit Score
When it comes to homeowners insurance in Lancaster, CA, your credit score is a significant factor. Your credit score will determine your homeowners insurance premiums. In general, a high credit score lowers your premium and vice versa.
Tip#3 – Choose Your House
The house you choose will have a significant impact on the cost of your homeowners insurance policy. This is because insurance companies base their insurance premiums on factors such as:
•Location of the house
•Type of construction
•Fire protection class
•Age of the house
Tip#4 – Obtain a Comprehensive Loss Underwriting Exchange Report (CLUE)
To find out about a property’s previous insurance claims over the last few years, even if you do not necessarily own the property, obtain a CLUE report. Generated by a consumer reporting agency called LexisNexis, a CLUE report is a loss history report that captures, among other things, up to seven years of claims history that a home has had over that period, if any.
For instance, if you’re targeting property in a flood-prone area, a CLUE report will show you if the property has suffered major flood-related water damage over the last seven years. A CLUE report can help you choose the right supplemental coverage and direct your remodeling/renovation efforts in the right areas. More importantly, a CLUE report can help you avoid buying a high-risk property with many previous home insurance claims.
Tip#5 – Bundle Coverages
Bundling coverages means purchasing different insurance policies from the same insurer, such as buying your car and home insurance from the same insurance company. Many insurers encourage policyholders to bundle by offering discounts, which can lower the cost of your homeowners insurance in Lancaster, CA.
Tip#6 – Leverage Your Home’s Safety Features
Besides the discounts that come with bundling insurance policies, most home insurance companies offer discounts to homeowners who install safety features such as a burglar alarm system and video surveillance system. If you have a home security system, you can use that as a basis to lower the cost of your home insurance policy.
These six tips will go a long way in helping you find the right homeowners insurance in Lancaster, CA. Do you need help finding affordable homeowners insurance in Lancaster, CA? If so, then contact the experts at John E. Peakes Insurance Agency. We are ready to assist you with all your home coverage needs today.