If you have your eye on a piece of real estate for sale in North Miami that you are ready to buy, then in most instances you will be required to buy homeowners insurance for the property you are interested in. This type of insurance policy protects you and the mortgage lender against losses caused by property damage from man-made destruction or natural disasters. Just like any other type of insurance you buy for your vehicle or other possessions, it is important in to know what homeowners insurance covers and how much it will cost.
While there is no definite answer to come up with a rough figure instantly, it is important to understand the determining factors so that you can get a good estimate on your premiums. Some examples include the size and type of your home, local crime statistics, and if your area is prone to natural disasters. Since the Florida peninsula is prone to damage during the yearly hurricane season, getting the right type of homeowners insurance policy helps protect your family as well as your possessions. Here are some important points to consider when determining homeowners insurance cost when buying real estate for sale in North Miami.
Type of Home and Size
Here are some factors to determine the price of the premium:
– Type of building materials used in the structure
– The home’s square footage
– Age of the home
– Recent renovations or additions to the home
The insurance company will combine all of these factors to come to an estimate on how much it would cost to rebuild your home in the event of a disaster. If it is determined that the rebuilding costs are more expensive, then you can expect your premium to be higher as well.
Regional Disaster Characteristics
Since the Miami area is particularly prone to hurricanes and heavy rainfall, insurance costs will be higher than other areas because of an increased risk. In addition, most homeowners policies do not include flood protection. You may be required to purchase additional options such as flood protection which can increase the premium’s price as well. It is a good idea to inquire about flood protection and to know your options.
Local Crime Statistics
Since theft or vandalism is always a possibility, homeowners insurance policies cover the loss of personal property or damage due to theft or vandalism. Properties located in urban areas that have a high crime rate can expect to have a higher premium price than ones situated in a quiet, peaceful neighborhood.
Accessibility to Fire Protection
If your home is near a fire hydrant or a local fire station, there is a higher chance of your home being saved in the event that a fire should occur. Homeowners insurance companies offer lower premiums for homes in locations where fire protection features are available and nearby.
Speak to a Professional
When buying homeowners insurance, it is important to consider these factors in order to get an affordable premium with everything included in a standard policy. You should also speak with professional real estate professional who understands homeowners insurance and can help you choose an affordable solution. Contact us for more information today on how we can help you get the most out of your homeowners insurance when buying real estate for sale.