Shopping for your dream house? It’s important to keep insurance in mind throughout the home buying process. Most lenders won’t provide a mortgage without insurance coverage. Your insurance company or agent, together with your Realtor, can help you get what you want – a good home that is properly protected.

Even Before You Start Looking for a Home
Put yourself in the best possible position to afford a home, receive the lowest possible mortgage rate and get insurance for your new house. This takes preparation on your part.

-- Check your home insurance claim-filing history. Get a copy of your loss history, such as a CLUE report from ChoicePoint or an A-PLUS report from Insurance Services Office (ISO). This is a record of home insurance claims you have filed. If you have not filed any insurance claims in the past five years, you won’t have a loss history report. And, depending on the property you ultimately buy, you will most likely not have any trouble getting insurance. The better your claim record, the less you may pay for insurance. Make sure the report is accurate and report any descrepancies immediately to your insurer or the database company. This can also be important if you are selling the home you are currently living in. A past claim does not have to be a problem. Repairs or improvements, if done properly, can make a property more attractive to buyers and insurers.


-- Renters insurance. If you are currently renting, it’s important to have insurance for your personal property. You can’t assume that your landlord’s coverage will cover the things you own. If you haven’t owned a home before, it might be helpful to have a history of insurance when you go to buy your first home.

-- Check your credit rating. Good credit helps you in many ways, including getting a mortgage at a good rate. Depending on the state and the insurer, it may also help you save money on your homeowners insurance. Get a copy of one or all of your credit reports. Make sure they are accurate and report any mistakes immediately. The credit report helps you see how your credit standing compares to others. If your credit is not as good as it should be, begin now to improve it.

House Hunting
As you look at homes, remember that the house you want to purchase – what it is, where it is and the kind of shape it’s in -- these characteristics can send your insurance rates up or down:

-- Construction of the house. If you are buying in a seismically-active region, look for newer homes built to current codes, or older homes that have been bolted to their foundations. They are better able to withstand earthquakes. If you plan to live near the Atlantic or Gulf coasts, consider a brick home because it is more hurricane resistant.

-- Age of the house. Older homes sometimes have features such as plaster walls, ceiling molding and wooden floors that could be costly to replace. Such special features may raise the cost of insurance slightly. Make sure you get replacement cost coverage in your insurance policy if it is available. Also, an older home that has been updated to comply with current building codes is typically less expensive to insure than an older home that is not up to date.

-- Condition of roof and home. If you are considering a “fixer upper,” you may pay more for insurance until clear improvements are made. In particular, check out the condition of the roof. A new roof in good repair will be attractive to insurers and will save you money and aggravation.

-- Plumbing, heating and electrical systems. These systems can wear out, become unsafe with age or become dated as safer technologies are introduced. Recent upgrades make your home safer and less likely to suffer fire or water damage.

-- Safety devices. Homes equipped with smoke, fire and burglary alarm systems that ring an outside service may get sizable discounts. Strong doors, dead-bolt locks and window locks may also reduce insurance costs.

-- Pool, wood-burning stove, etc. You will need higher property and liability coverage if you are buying a home with these features. With a pool, consider getting added protection, such as an umbrella or excess liability policy.

-- Quality and proximity of the fire department. Homes near a fire station, those with a hydrant close by and those located in communities with a professional rather than volunteer fire department will cost less to insure.

-- Location, location, location. Homes near the coast can be more expensive to insure, because of the increased risk of wind, water and hurricane damage. In many states, you will pay the first few thousand dollars in damage before your insurance kicks in. You also need to think about the threat of floods or earthquakes. You will need separate insurance for these risks and it can be costly. To make insurance available, there are state-sponsored Fair Access to Insurance Requirement (FAIR) plans. FAIR plans, however, can be expensive and provide less coverage.

Placing a Bid
You have looked at a number of properties and are narrowing your search to a few homes. Now get more specific information on the house and its insurability. You should take the following steps:

-- Check the house’s loss history report. Ask the current homeowner for a copy of the house’s insurance loss history report. This will provide information regarding claims filed during the last five years and answer two questions that any savvy homebuyer should ask. Are there any past problems in the home? If damage has occurred, was it properly repaired? Prior claims are not barriers to getting insurance, but you should know the history of the home before you go to closing.

-- Get the house inspected. A complete inspection of the home is very important.  An inspector should check the general condition of the home; look for water damage, termites or other infestations; check the electrical system, septic tank and water heater; suggest upgrades or replacements that may be needed.

-- Call your insurance agent.  Ask your agent if the house will qualify for insurance and get an estimate on the cost.