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If you’re new to homeownership, one of your first expenses is homeowner’s insurance. Not to be confused with mortgage insurance, your homeowner policy protects you in the event of a catastrophe.
The cost of your home is only one factor in an extensive list of how insurance companies calculate premiums. Just like with car insurance, location plays a big part, as does age and construction. Then there’s your credit score and claims history. Here’s a breakdown of the factors that most determine the cost.
A few other things impact the premium too. If your credit score is low, typically the insurance company asks for more money upfront and a higher premium. You’ll also pay more if you made multiple claims within the last five years. Of course, if you’re a first-time buyer this wouldn’t apply to you. Coverage for your personal property increases with the value of that property. If you own expensive jewelry, several computers or electronics, plan to pay more to cover them.
You can reduce premium costs by installing a security system, taking care of maintenance items, replacing major systems (wiring, plumbing, HVAC) and updating the roof. For more ways to learn how to reduce your insurance costs, ask your real estate professional for advice. Be certain to shop and compare prices and coverage too.
As an expert in San Francisco, I know our local real estate market well and tour the new homes available each week. Additionally, should you need more information on the local communities and schools; I have sources and information that may prove useful. The sale or purchase of a home is one of the most important events in our lives, and I am here to help you make you transaction smooth, efficient and satisfying.