You’re in the process of purchasing your own home in Flower Mound, TX in the Lewisville area, and the financing company requires homeowners insurance on the purchase as part of the mortgage process. If you’ve never held homeowners insurance before, many factors affect the monthly premium that can make a big difference.
The most important consideration that the home insurance company is looking at when figuring out what your premiums are is how likely you are to have to file some sort of home insurance claim, and how much the claim amount ends up being. The area’s proclivity for natural disaster is the main measuring stick in figuring this out, especially when it comes to homes built on areas prone to flooding. Other natural disasters that have to be accounted for include hail, hurricanes, and wildfire.
The features of the house may bring down the impact of some of these issues, such as keeping brush cleared away from the home for a specific radius and investing in materials that aren’t easily damaged by hail.
Another thing that affects home insurance rates is what your credit profile looks like. Insurance companies do risk assessments that determine what risk factors may make a person more likely to file a claim. One of these issues concerns your credit. Since you are picking up a mortgage on your house, you likely have good credit, but great credit may drive the rate down more.
Another aspect of the home insurance premium pricing is how extensive of a house you’re purchasing, and whether it has unique features that may require additional insurance riders. For example, an estate with outbuildings may require additional insurance coverage.