What are the things that you think about when you go house hunting for the perfect family home? Is your mind filled with thoughts about the size of the bedrooms, the length of the garden or the matter of whether the master bedroom has en-suite facilities? Your thoughts could be away from the house itself and focussed more on the location of the houses that you are looking at and the proximity to schools or local amenities. The one thing that many house hunters fail to take into account, when buying their new home, is the cost of the insurance that comes along with it. Let’s face it, for as long as you are living in that house you are going to be paying buildings and contents insurance on it, so really the cost of your annual insurance bill should be factored into the amount that you have available to spend on the purchase of your new home.
Things to Consider
Before you start house hunting take a moment to think through all of the individual costs that incurred when you decided to purchase a home. Have an understanding of your credit rating as a good rating will make it easier for you to secure a mortgage, plus you may find that it allows you to get a better deal on other things associated with the purchase of your home such as insurance.
Obtain a copy of your credit report and check it for accuracy as any errors on it may make it harder for you to secure credit against anything in the future. Insurance does not only apply to those that are buying a house, renters too should have suitable insurance against anything that could destroy or harm their personal belongings or other items they own within the rented property. This kind of insurance generally includes an extra amount to cover the extra cost of your living expenses should the home you rent become uninhabitable. Plus, it also serves as insurance history in your favour when it comes to taking out insurance on a home that you are going to buy.
Things to Remember
It’s not just the physical aspects of the houses that you are looking at that you should take into account. You should also make a point of investigating the surrounding area. For instance how far is the house from the nearest fire station should there be an emergency? Is the house that you are looking at buying located in a coastal area or close to a river? Could there be a risk of flooding to the property that will impact on the price of the insurance premium that you will be required to pay?
Consider the age of the home you want to buy – will you have to pay more for your insurance because you will be looking to replace period features should the worst happen? You should also take a good look at the state of the roof of the house too to ensure that you are not going to be looking at making a claim for repair in the near future.
Mark Davidson is a renowned author on all things insurance related – he regularly visits nsure4business.co.uk for more information on the insurance market.