House hunters should look for houses that have electrical, heating and plumbing systems that are less than 10 years old
Chicago, IL (PRWEB) May 14, 2015
While homeowners think about the costs of buying their new home, they may not think about homeowners insurance right away. The Federal Savings Bank knows that these policies could add up depending on the cost of insurance at first and whether these rates rise in the future. With this added risk, homeowners should take action to prevent home insurance from rising too much.
Some tips to avoid higher home insurance costs include:
Rethink certain home additions
Although adding a new feature to the home like a pool seems like a great way to boost home values and fun at the same time, some additions may increase homeowners' liability. Attractions like swimming pools will likely lead to a greater chance that someone will be involved in an accident and having a liability claim could result in higher insurance rates.
Keep credit accounts current
Lenders usually look at credit scores to calculate the policyholders' insurance rates and if homeowners do not keep their accounts in good standing, this could mean elevated rates. Make sure to pay credit obligations on time, avoid unnecessary debt and do not close older accounts to keep credit scores high.
Choose your next home's location carefully
Homeowners could cut insurance costs by moving to homes that are relatively new. House hunters should look for houses that have electrical, heating and plumbing systems that are less than 10 years old. There are also certain safety features near homes that could make a difference, such as if a fire hydrant is close to the property.
Homeowners looking to move to a home that could reduce their insurance costs can contact The Federal Savings Bank, a veteran owned bank, to learn more about applying for a low rate mortgage.