Homeowner’s Insurance

Unlike renter's insurance, if you have a mortgage, homeowner's insurance is not optional. The mortgage company will want to see that you’ve paid for insurance coverage at the closing.

As with other forms of insurance, it's good to shop around for a homeowner’s policy. Involving the insurance agent early in the home-buying process can save you money because he or she can provide tips on how to keep insurance premiums low.

For example, homes built with fire-resistant materials such as brick tend to have lower insurance premiums, as do newer homes. Also, try to avoid buying a home in areas prone to natural disasters, such as flooding.

Another way to decrease the monthly premium is to increase your deductible. That means you’ll pay more out of your own pocket if you have a claim, but your insurance premiums will be less.

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