DO I REALLY NEED HOMEOWNER'S INSURANCE
Yes. A paid homeowner's insurance policy (or a paid receipt for one) isrequired at closing, so arrangements will have to be made prior to that day.Plus, involving the insurance agent early in the home buying process can saveyou money. Insurance agents are a great resource for information on home safetyand they can give tips on how to keep insurance premiums low.

WHAT STEPS COULD I TAKE TO LOWER MY HOMEOWNER'S INSURANCE COSTS
Be sure to shop around among several insurance companies. Also, consider thecost of insurance when you look at homes. Newer homes and homes constructedwith materials like brick tend to have lower premiums. Think about avoidingareas prone to natural disasters, like flooding. Choose a home with a firehydrant or a fire department nearby.

Other ways to lower insurance costs include insuring your home and car(s)with the same company, increasing home security, and seeking group coveragethrough alumni or business associations. Insurance costs are always lowered byraising your deductibles, but this exposes you to a higher out-of-pocket costif you have to file a claim.

IS THE HOME LOCATED IN A FLOOD PLAIN
Your real estate agent or lender can help you answer this question. If you livein a flood plain, the lender will require that you have flood insurance beforelending any money to you. But if you do not live near a flood plain, you maychoose whether or not to get flood insurance coverage for your home. Work withan insurance agent to construct a policy that fits your needs.