You’ve just bought a home. Congratulations! Buying a home can be so nerve-wracking and complicated that many people forget to consider what happens when their offer has been accepted and they become official homeowners. Home insurance should be the next step to protecting the largest purchase you’ll probably make in your lifetime. Whether the home is brand new, or just new to you, there may be insurance discounts available.
Home insurance companies usually offer a variety of discounts for homeowners, like the protective devices home discount, senior citizens discount, and the insured to value discount. Another common way to reduce your home insurance premiums is by qualifying for the newly purchased home discount.
The newly purchased home discount can range between 2 and 10 percent. This can often be combined with other discount programs offered by the insurance company, significantly reducing your annual premium rates.
It’s easy to qualify for the newly purchased home discount. The home itself does not have to be a recent build, it just has to be new to you. Depending upon your insurance carrier, the length of time for when you can add the discount will vary. Some insurers require that the home be purchased within the last twelve months, while others provide the discount for up to three years of ownership.
Why Provide a Discount?
Insurance companies want to reward you for purchasing a home. It demonstrates that you are responsible and handle your money well. Even if your new home was built in 1979, you likely had an inspector tour of the building to assess the wiring, plumbing, and the quality of the roof, the foundation, and other elements. If anything is found to be broken, showing significant wear and tear, or below code requirements, then the buyer is likely to negotiate with the seller to make repairs. Whether you or the previous homeowner updates the home, your insurance agent views this positively.
After an inspection and subsequent repairs, the home is now less likely to have problems in the near future, reducing the likelihood that you will submit a claim. For example, if the inspector notices problems with the roof, you may request that the seller have a company replace it, or give you a discount on the purchase price so that you can pay for someone to repair it once you’ve moved in. Either way, to an insurance company, a new roof means better protection from the elements, fewer leaks, and proper insulation and venting.
After the home has been updated to local safety and building requirements, make sure to keep up with repairs. As a responsible homeowner, you should regularly perform routine maintenance. For example, many electric companies offer programs for homeowners. They send a technician to your home every 6 to 12 months to test your water heater, furnace, and other appliances. Fixing smaller problems now is much cheaper than letting the issue get worse and causing greater damage in the future.
Checklist for New Homebuyers
Don’t wait until after your offer has been accepted on a home to contact an insurance agent. Speak with your independent insurance agent today to find out if you qualify for a newly purchased home discount. The agent will have the knowledge and experience needed to recommend the right insurance—and discounts—for you.
Home insurers often offer multiple policy types, like auto and life insurance. If you are interested in additional protection, speak with your agent about adding these policies to your account. You may receive a discount for doing so.
If you purchased a townhome or condo, the hazard insurance that is usually included in your Homeowner’s Association fees is not enough to completely protect your new home. It usually only covers damages to the outside of the property. Meet with an agent to discuss additional insurance.
Depending on the location of your new home, you may need to purchase additional coverage. If you live in a state that experiences more hurricanes, flooding, or earthquakes, you’ll likely want to have an additional policy. Your independent insurance agent can advise you on the best insurance coverage to suit your needs.
Some other Enhanced Insurance articles related to Home Insurance Discounts:
Enhanced Insurance is not written by attorneys. If you’re looking for legal advice, you need to contact a lawyer. Further, insurance practices and forms change constantly and are varied from state to state. For definitive answers in your area, contact a local agent.
While the majority of people want an agent involved in their purchase of insurance, many people want to see if they can save money by buying direct from the insurance company. Others want to try a direct quote to make sure the premium they’re now paying through their local agent is fair. If you want a quote for your coverage, click on the competitive quote button on the right side of this page.
Other EnhancedInsurance.com articles that might interest you: