Before you buy a new home- consider home insurance

Oftentimes when homebuyers are shopping for a new home they forget to consider homeowners insurance costs when calculating their mortgage payment. Certain aspects of a home can cause your home insurance rates to be higher than other homes. So, especially if you are deciding between two homes on the market- consider insurance rates which might make a big difference on your monthly payment. Ask yourself these questions when shopping around:

Is the house in a high-risk  flood zone?
If the home you want to buy is located in a high-risk flood zone you will most likely be required by your lender to carry flood insurance. Flood coverage is not provided under a standard homeowners insurance policy so a separate flood policy will be necessary. Flood insurance is sold by, and rates are set through, the National Flood Insurance Program. Depending on the flood zone, flood insurance rates could vary from a few hundred to a few thousand dollars per year.

>Not sure if the house is located in a high-risk flood zone? Visit FloodSmart.gov and type in the house address to find out.

Is there a swimming pool on the property?
If the home you are considering buying has a swimming pool on the property the home insurance rates could be a little higher than a home without a pool. Your best bet in this scenario is to ask a home insurance agent. Be prepared to answer a few questions about the swimming pool such as, Is there a fence surrounding the pool? Is there a lock on the gate leading into the pool area?

How close is the home to a responding fire department and fire hydrant?
Many home insurance companies will offer discounted rates for homes that are located within a certain distance from a responding fire department as this decreases the risk for fire loss. For the same reason, discounted rates may also be available for homes within a certain distance from a fire hydrant. Be sure to keep this in mind while shopping for a home.

Is the home more than 50 years old?
Since older homes may be more susceptible to damage depending on how well they have been maintained, some home insurance companies offer discounts for homes that are less than 30, 40 or 50 years old depending on the specific company. However, if you have an older home that has a recently updated roof, electrical system, etc. your rates might not be as high as an older home that is more outdated. So, if you are trying to decide between a home built in 2002 and a home built in 1942, consider the home insurance costs that might be affected.