Researching, talking to realtors, getting approved for a loan, touring, and finally selecting your first home requires a lot of thought and planning. And while all these steps are essential, there’s one step that’s often overlooked by first-time homebuyers: Shopping for insurance and finding the lowest rates.  

Below, we’ll discuss 3 key tips for reducing your insurance premiums. 

Tip #1 – If you’re currently renting, get renters insurance. 
Renters insurance protects the contents of your rental home or condo (I.e. your own belongings) in the event of an unexpected tragedy such as a fire or theft. Of course, this is a good reason to have renters insurance to start with. However, you shouldn’t overburden yourself with full homeowners insurance, instead, which is realistically more coverage than a tenant might need. 

But you can also enjoy renters and future home insurance savings by establishing a loss-free claims history. Insurance companies like to see that you’ve had insurance for a few years and haven’t made a claim. If you can establish this history now, while you have renters insurance, you may get a reduction in insurance premiums for your future home. 

Tip #2 – Consider bundling your insurance. 
Larger insurance companies often offer different types of insurance. They may provide coverage for homes, cars, rental properties, health and more. If you need some (or all) of these benefits, consider inquiring about bundling several different benefits with the same carrier. Doing this often comes with discounts. 

Tip #3 – Choose a disaster-free location if you can. 
It’s not an option for everyone, but if you can, choose to live in an area that doesn’t have frequent acts of nature, such as flooding, tornadoes, or hurricanes. The propensity for these acts drives the price of insurance up. This is as simple as moving from one neighborhood to another, and more importantly, being aware of the common hazards that could threaten on your property. 

You always have options where acts of nature are concerned. For example, say you can live in any part of a town or city that’s near a lake or river. In this case, try to choose something that’s not in a low-lying area. These places will tend to flood more often. They might include a requirement to buy flood insurance, which could be an extra burden that you might not want to deal with. 

Purchasing home insurance may not seem like a top priority in the grand scheme of purchasing your first home. But remember that you’ll be paying premiums to protect your investment forever. It’s wise to put the extra time and effort to compare plan options to lock in your rates for the future.