New Homeowners Save On Insurance Premiums
April 18, 2013
Not only do new Ideal home owners receive energy savings on their energy efficient new homes, they also save considerably on homeowners insurance premiums. One of the key factors to look at when buying a home is not just your mortgage, your loan, property taxes, and interest rates, but also your homeowners insurance. According to Shelter Insurance Agent Brian McPherson of Norman, Oklahoma, the new home savings definitely add up. If you compare two $150,000 homes in the Oklahoma City metro, one brand new and the other 10 years old, the premium difference with his company is 40 percent, Brian said. Why the difference in premiums when both homes have the same market value? "It's due in large part to the new systems in the home - i.e. roof will withstand wind and hail more effectively than an older comparable roof, the plumbing system will be less likely to fail, bursting a pipe that could cause significant damage, and the electrical system will be new and up to current code, and therefore less likely to fail and cause a house fire," Brian says. Other factors affecting a new homeowner's insurance premium are the insurer's claims history, driving record, credit history and homeowner's insurance deductible. In addition, Brian says bundling all your insurance (car, homeowner and life) through one company may also provide savings. Homeowners should review their home insurance annually to make sure they have adequate coverage. Brian also advises his clients to add sewer, drain and earthquake endorsements since those items aren't typically covered in a standard homeowner's policy. When shopping for an insurance agent, Brian recommends that new homebuyers find a local agent that they have confidence both in designing their insurance plan, and in servicing their changing insurance needs. And, an agent that represents a carrier with a strong financial standing and highly rated claims personnel.