Buying a Columbus home also means buying a homeowner’s insurance policy! Once you have a home under contract, you’ll need to obtain insurance coverage for it. The coverage must be effective as of the closing date, and proof of coverage will be required at closing.
Understanding homeowner’s insurance could help you save money on the premiums. Whether you are a first-time homebuyer, or you haven’t shopped insurance in a while, here’s what you should know!
Your credit score affects your insurance premiums. Statistically, consumers with lower credit scores tend to file more claims, and have larger claims. Even a “fair” credit score could cause you to pay 32% more for insurance.
The Ohio Department of Insurance regulates how consumer credit information may be used by insurance companies. While your credit score is a factor in your premium costs, insurance companies are not allowed to use your score as the sole basis of their decisions.
Understand what your policy covers. See the State of Ohio Guide to Homeowner’s Insurance for more information about types of coverage, industry terms and how to handle claims.
Shop around. With a national insurance company, your premium costs can be affected by claims from several states away. A regional company that focuses on the Midwest may have better pricing. Choose a reliable company with a history of paying claims timely.
Use the same company for home and auto. When possible, carry home and auto insurance policies with the same company; you’ll usually get a discount on your premiums.
Higher deductibles mean lower premiums. You might be surprised at the difference in premiums between a $500 deductible and a $1,500 deductible. But be careful: a deductible is the amount you’ll pay out-of-pocket if you file a claim. Don’t exceed what you can afford.
Install home safety features. Smoke alarms, fire extinguishers and deadbolt locks improve home safety, and you’ll earn premium discounts for some of them. Electronic security systems can grant more discounts. Check with your insurance company to confirm if premium discounts apply before installing high-end systems, or signing up for monitored security services.
Pay attention to coverage limits, riders and details. If you have jewelry or other expensive possessions, you may need additional coverage or a special rider. Keep an inventory of your belongings and have photos of them, along with receipts and/or appraisals. Keep this in a safe deposit box, along with your policy and other important documents.
Your pet can affect your policy. Your dog could affect your insurance coverage, raising your premiums or causing your policy to cancel. Ohio ranks in the top 5 states for homeowner’s liability claims involving dog bites. And despite legislative changes in what defines a “vicious dog” in Ohio, the law does not force insurance companies to offer coverage. Do some research about how dogs affect your insurance coverage.
Keep your home in good condition. Insurance companies may periodically examine the exterior condition of your home, along with your yard, driveway and walkway. Peeling paint, overgrown trees, broken concrete or other signs of neglect can cause them to contact you and require repairs. Or, they may raise premiums, or cancel coverage.
Our Educated Buyer Notebook, free to our Buyer-Clients, supplies more information about how insurance premiums are affected by home type, location and other factors. When you’re ready to shop for your policy, we will be happy to refer you to trustworthy agents serving Metro Columbus.
As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.
Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!
Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!
Andrew Show
Broker, CEBA, CEBA-M, CNE, CSP, ABR-M, e-PRO, GREEN
Buyer’s Resource Realty Services
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax
