A white man and woman look happily at each other as they sit among moving boxes in their new home.

How to Shop for a Mortgage Loan

Updated April 1, 2021 . AmFam Team

Getting a mortgage loan is a big life decision. Learn how to shop for mortgage rates, compare lenders and get started today!

When you set out to buy a home, it may seem like getting a mortgage is just another task that’s got to get done. But the truth is, even in a very competitive market, mortgage offers can vary significantly. That’s why it’s crucial to be thorough when shopping around for a mortgage — the decision you make will have lasting repercussions on your financial state for years to come.

Because getting your mortgage right the first time is so important, we’ve put together this article to help walk you through the various steps of mortgage shopping.

Today, we’ll review ways to manage your credit score and help you understand your mortgage shopping window. We’ll also teach you how to shop mortgage rates to secure the best deal out there. Let’s get started!

Get Your Credit Score in Check Before Mortgage Shopping

Before you begin to consider purchasing a home, you should check in on your credit score. The higher your credit rating, the better the odds of receiving affordable mortgage terms and a competitive interest rate. You’re allowed one free credit report per year, so check in with the major credit bureaus and download yours before applying for a mortgage.

What is a good credit score for a mortgage?

If you’ve got bad credit and your credit score is under 580, you may want to work on improving that score by paying down your credit cards and debt before you start shopping for a mortgage. Some lenders may not be willing to lend to you. Likewise, if your score is above 580, you’re more likely to meet the minimum qualifications for lending. A good credit score for a mortgage is between 700 and 749.

What credit score do mortgage lenders use?

Most lenders will reference the credit bureau's FICO® scores to determine your credit risk. They’ll also use this figure when assigning an interest rate to your loan.

How to apply for a mortgage without hurting your credit score

Before applying for a mortgage, be sure you understand the length of your mortgage shopping window — you’ll need to make some big financial decisions in the coming days.

When you apply for a loan, your credit score will typically drop a few points from the “hard inquiry” that lending groups will perform. You’ll typically have a 45-day shopping window for mortgages — after the first hard inquiry is performed on your FICO score.

It pays to check with your lender about the scoring model they’re using because some only allow for a 14-day mortgage shopping window. If you choose to apply with multiple brokers while shopping for a mortgage, their individual hard inquiries will be registered as a single inquiry in that time frame.

How does getting a mortgage affect your credit score?

In short, it all depends on your financial situation. If you’re in good fiscal health with plenty of savings, the shift can be nominal.

There are other ways to shop for a mortgage without hurting your credit, too. You can work with Credit Karma (Opens in a new tab) or another financial services group to help you understand your credit issues and get a feel for your credit-worthiness. You can also use these groups to apply for and field you offers as well. Once you’re ready to fill out your mortgage application, a hard inquiry will be performed.

Check If You’re Prequalified or Preapproved for a Mortgage

After you’ve applied for a mortgage, it’s key to understand if your lender has preapproved your application or if you’re simply prequalified. It’s a lengthier process to get preapproved for a mortgage vs. prequalified.

How Long Does the Preapproval Process Take?

The mortgage preapproval process can take anywhere from one to three business days after submitting your application. But after that hard work is done and you get approved, you’ll have a valuable letter from your lender stating you’ve been given a green light to purchase a home.

The letter will usually contain a price cap and a deadline, valid anywhere from 60 to 90 days, but typically you’ll have around a 45 day shopping window for mortgages. You may be able to extend that window with an additional re-verification by the lender.

Learn About the Types of Mortgage Loans

After preapproval, you’ll want to consider your mortgage type options and select one that best benefits you financially. It can be a challenge to compare mortgage offers when shopping, but with the help of an experienced realtor and a seasoned mortgage broker, they can help guide you to an offer and loan estimate that works best for you. Here are a few of the more common types of mortgages:

Fixed rate mortgage (FRM)

Usually a safer bet, fixed rate mortgages are great for buyers looking for predictability in their housing costs who are planning on living in the home for at least a decade. You’ll have the option to pay the mortgage back on a 15- or 30-year repayment schedule. Some lenders will offer 20- or 25-year terms, too.

In most cases, shorter the repayment periods are rewarded with lower interest rates for your mortgage loan. And if you’re able to pay the mortgage off quickly, you could save thousands of dollars in interest payments.

These are fully-amortized fixed rate loans — meaning that the loan will be fully paid off at the end of the payoff schedule. FRMs are quite popular simply because the interest rate is locked in — or fixed — over the entire life of the loan.

Adjustable rate mortgage (ARM)

This type of mortgage is ideal for those who plan on living in their home for a few years. You’ll typically get a much lower rate vs. a fixed-rate mortgage — but if you end up staying beyond the expiration date, the rate will likely be much higher. Thereafter, you’re interest rate will adjust to the average interest rate, which can be risky. The low rate period of adjustable rate mortgages usually lasts from 5 to 7 years.

Interest rates on loans of this type ebb and flow as the current interest rate goes up and down. It’s a riskier mortgage, in some cases because there’s no guarantee the market will be stable. ARMs typically start at a lower rate than their FRM counterparts.

Government-guaranteed mortgages

Guaranteed mortgages are typically offered by a government agency that purchases your loan from a lender. They guarantee to fund the loan in the event of a default on the mortgage and use the home as collateral against the debt.

Both the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) have home loan options that are great for first-time home buyers. This is because they usually come with lower down payment requirements and allow more people to qualify. USDA loans are another great option when shopping mortgages, though qualifying for one is based on your income and location.

Here are a few types of guaranteed governmental loans:

  • FHA loan
  • VA loan
  • USDA loan

FHA loans are attractive to many buyers because the minimum down payment is only 3.5 percent of the home purchase price — you’ll need at least 5 percent with a conventional loan. And if your credit needs improving, you can qualify for an FHA loan with a FICO score of 580, where other loan types will need that to be a bit higher.

Another big advantage of opting for an FHA loan is that buyers are allowed to borrow up to 6 percent of the purchase price to pay for closing costs. FHA loans require private mortgage insurance (PMI) which you’ll pay for at closing and every month until 20 percent of the loan is paid.

Bridge loans

A temporary loan on your existing home, bridge loans are short-term in length, helping to bridge the gap when you’ve got two mortgages to pay. These are used to help you pay for your home that’s still on the market after you’ve closed on the purchase of a new home.

Piggyback loans

Also referred to as a second common trust, the common piggyback loan is actually a series of loans that equal the total amount of the sale price. Typically, the loans are divided into an 80/10/10 split where 80 percent of the purchase price is funded through one loan, and two others at 10 percent are mortgaged separately. One covers the down payment, and the second trust loan is funded typically at a higher annual percentage rate.

Balloon mortgages

Usually reserved for commercial real estate purchases, balloon mortgages do not fully pay off the total sales price until the final payment, which is much larger than the amortized payments. The large balance due at maturity can be substantial.

Jumbo loans

These are loans that exceed the government-sponsored limits set for typical lending home purchases.

Learn About the Mortgage Lenders

There are many different types of lenders out there. But, how do you pick a mortgage lender that’s right for you? It may be wise to rely on a financial adviser to help you select a lender that’s best aligned with your interests. From online providers to local credit unions to privately funded mortgages, you’ve got options. For more details on how to shop for a mortgage lender, our first-time home-buyers hub can help you understand the basics of lending.

Understand the Mortgage’s Terms of Repayment

After you select a lender, they’ll work to get you a mortgage financial statement that details the specifics of your lending, including a mortgage payment breakdown. There, you’ll find information on fixed or adjustable rates, among other data. It’s key at this point that you understand how mortgage interest works.

If you’re still wondering, “can I shop around for mortgage rates?” the answer is: Yes, you can and you should! In today’s competitive mortgage climate, you can negotiate and leverage a better deal by having one mortgage firm compete against another offer.

Shopping around for mortgage lenders and letting them compete for your business can help you get a more attractive ARM or fixed rate mortgage. And you might even find the lenders offering you discounts on points, closing fees and other incentives. Review these loan terms with your financial adviser to best understand the long-term implications of one offer over another.

Interest, APR, points ΜΆ what do these mean?

Getting familiar with all the different terms and conditions of a mortgage agreement can be a challenge. There are many key terms you’ll need to be familiar with in order to ensure that you’re fully informed of your financial commitment to the loan. Our hidden costs of closing on a home calculator is a fantastic resource to get you up to speed on these definitions and it can build you an estimate of costs you’ll encounter at closing.

Shop for the Best Mortgage Rates

After you’ve applied for mortgages with a few groups and have offers on mortgage deals back from each, it’s time to get deep into the numbers. If you’re not looking carefully at the differences between each offer, you could be leaving money on the table.

In order to line yourself up for financial success, you need to be certain that you’re selecting the best offer out there. Work with your financial advisor or make a spreadsheet that compares mortgage rates and contrasts each offer to help select the one that saves you the most money.

How do you compare mortgages?

You may be able to plug your numbers into an online mortgage loan comparison calculator to help you see the differences between loans. Let’s suppose that you’re considering a 15-year loan vs. a 30-year loan when mortgage shopping.

If you elect to go with a 15-year loan, the total cost of the loan can be reduced by tens of thousands of dollars. You’ll pay more each month, but the benefits can be many. In addition to the savings, you’ll also have paid off your home in half the time.

How to Negotiate Your Mortgage Offer

One thing that comes as a surprise to new home buyers is that you may have the opportunity to negotiate your deal with the lender. After determining the best mortgage rate or deal, you may be able to approach a preferred lender with a different offer and see if they’ll match or beat it. Shopping around for mortgage rates can sometimes save you a few thousand dollars.

So, how can you negotiate mortgage rates? You can work with your lender to reduce closing costs — even servicing fees and other nominal costs — and you can negotiate mortgage rates as well. All you can do is try. If it works, you’ve saved more of your hard-earned money!

Make Your Mortgage Loan Selection

After receiving a response from your lenders on negotiations, it’s time to compare the final offers again and decide on which mortgage to go with. After selecting the best mortgage for you and your budget, contact the lender and let them know that you’re ready to move forward and sign the deal. They’ll put together a timeline and typically work with a title company to build out a closing statement and get you into your new home.

Because buying a home is one of the biggest investments you’ll ever make, having expert advice in your corner can make a serious difference. Our guide for first-time home buyers can help shine a light on each of the steps involved in purchasing a home.

Start Considering Your Homeowner’s Insurance Options

Buying a home and finding the best mortgage is a lifelong dream for many and you’ll want to carefully insure your new home in case something should happen. While you’re considering your insurance options, be sure to check in with your American Family Insurance agent (Opens in a new tab) and request a customized quote. You’ll find our agents are experts at helping you to maximize your insurance dollars — and can point you towards key savings and discounts. 

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    Homeowners Insurance & Temporary Housing

    Consider this — your home or apartment is damaged from a small kitchen fire and, not only does your kitchen need repairs, but your home has smoke damage as well. Would you be able to continue comfortably living there while repairs are being made? Probably not.

    That’s where insurance for temporary housing comes into play.

    Temporary living expense coverage, also known as loss of use coverage or Coverage D, is reimbursement for living expenses when loss of or damage to your home by a covered event forces you to maintain temporary residence elsewhere.

    You can use insurance for temporary accommodation in instances such as:

    • Your home becomes uninhabitable after a fire
    • A wind storm caused a tree to crush your roof
    • If a covered event, like a lightning strike, causes your air conditioner to break down
    • If an emergency, mandatory evacuation required you to relocate temporarily
    • A vehicle collided with your home
    • An explosion causes your home to become unlivable
  • Roof and gutter covered in ice.
    Roof and gutter covered in ice.
    Protect Your Roof: How to Prevent & Remove Dams

    Icicles may give your home a quaint look in winter, but they’re symptomatic of a bigger problem — ice dams. Ice dams can damage your home because they prevent melting snow and ice from draining properly. Ice dams can lead to mold, rot and water leaking into your attic and nearby ceiling. But don’t panic just yet. We’ve highlighted how to prevent and remove ice dams and ways to mitigate damage to your home from ice dams.

    Red house in the snow.

    What is an ice dam?

    What causes ice dams? Ice dams form when attic air becomes warm enough to heat the underside of the roof, which in turn causes the snow on top of the roof to thaw. The melting snow runs down the roof until it hits an eave or roof edge that is below the freezing point. The melted snow refreezes and creates a ridge of ice — an ice dam — which blocks further runoff. As snow continues to melt, it has nowhere to go but up, where it starts seeping under the shingles and into the house.

    Ice dams typically form near the edge of the roof when water runs off the warmed roof and then freezes again at the eaves, but this isn’t the only place you’ll find them. They can also form on gutters that don’t drain completely and around skylights because of the less-insulated design.

    Icicles hanging from roof's gutter.

    Why are ice dams bad?

    Ice dams can cause big problems for your home. The weight of these heavy icicles has been known to rip gutters from roofs and cause damage to the shingles on your home. But the damage doesn’t stop there. Damaged drywall and plaster, water-stained ceilings and peeling paint are also the result of ice dam damage.

    Ice dams increase the chance of water seeping into your attic and soaking your insulation. This significantly brings down its R-value or its heat-retaining/insulating capacity — and worse yet — it can cause structural damage if left unchecked. Over the years, the effects of ice dams can lead to blistering of the interior and exterior paint. It can also spur the growth of mold and mildew, as well as weaken structural beams and rafters. Take into account the high-cost contractors will likely charge to fix the problem and you’ll begin to understand why it’s wise to take a proactive approach to managing ice dams.

    Person inspecting roof for damage. 

    How to Identify Ice Dam Damage to Your Home

    If you suspect that your home has an ice dam, it’s important to first detect signs of ice dam leaks and assess the extent of the damage. It may be necessary to bring in a contractor for an estimate in order to have a solid understanding of how extensive the damage is. In the meantime, here are some DIY ideas to try out:

    Snap some photos

    From the exterior of your home, take a few photos that you can use as a reference to look for signs of water damage on the interior. Look for stains on your ceilings and walls near the position of the ice dam.

    Check your attic

    Get into the attic and look for water dripping or staining on the rafters and roofing underlayment. It can be helpful to flag these areas so that you’ll be able to locate them later.

    Inspect your chimney

    See if you can find evidence of ice forming around the base of the chimney, where it meets your roof. If the flashing has come loose or isn’t sealed well, this can be another place where ice and meltwater can do some damage. From inside the attic, review the way heat escapes from around the perimeter of your chimney. If you can see daylight through that seal, take action to seal it up as soon as possible.

    Snow and ice on a roof and gutters.

    How to Prevent Ice Dams

    The basic principle of preventing ice damns is keeping your roof cold. If your roof is cold, snow won’t melt as fast and an ice ridge will be less likely to form. Keeping your roof cold isn’t always as easy as it sounds, so we’ve got ice dam prevention tips for you.

    Ice dams are usually created when the attic is warmer than the air outside. Ideally, the insulation keeps warm air in your home and out of your attic. The venting system in your attic helps keep it cool and hopefully close to the temperature outside. Together, this clever combination keeps snow on the roof from melting — and if the snow doesn’t melt, then ice dams shouldn’t form.

    The key to preventing ice dams on roofs and in roof valleys involves increasing ventilation in your attic, adding insulation and sealing air leaks. This is not a quick fix but a permanent correction, so it requires some effort and, most likely, professional assistance. However, the long-run benefits include a roof free of ice dams and a more energy-efficient home. We’d call that a win-win.

    Worker insulating an attic.

    Follow these 10 steps to avoid ice dams:

    1. Increase ventilation. Keeping cold air moving under the roof is the first step toward preventing ice dams. The ridge and soffit vents are designed to do this, but they might require a professional inspection and baffles to improve the flow and provide a clear path for the air.

    2. Cap the attic hatch. If you have an unsealed attic hatch, a weather-stripping cap will keep the heat in your home and prevent it from creeping into the attic. Remember, you don’t want warm air coming up into the attic and melting snow on the roof, causing freezing and ice dams.

    3. Examine exhaust systems. Most homes have exhaust ducts in the bathrooms, kitchen and laundry room. These vents should all lead outdoors through the roof or walls. If they’re vented to the soffit, you’ll need to have that changed for permanent ice dam remediation.

    4. Check the insulation. Check to see if your attic floor needs more insulation. Maintaining this protective barrier at optimum depth helps your home stay warmer and more energy efficient while keeping the cool air in the attic.

    Worker fixing a chimney.

    5. Install chimney flashing. Do you have flashing, a metal strip that prevents water penetration, between your chimney and the house? If not, it’s time to add it and seal any gaps where ice, water and cold wind can sneak in. Remember, you’re working around the chimney, so using fire-safe products is essential.

    6. Caulk leaks. Anywhere electrical cables, vent pipes, satellite dishes and other penetrations occur in the roof, you stand the risk of having gaps and air leaks. Caulk these areas with a fire-stop sealant to keep them as air-tight as possible.

    7. Check the ducts. Make sure all ductwork through the attic is properly sealed and insulated. If you have an older home, it pays to check your heating ducts to make sure they’re not bringing excess heat into the attic.

    Worker fixing a light in the ceiling.

    8. Look at the lights. If you have can lights or other light fixtures in your ceiling that are not sealed, you’re releasing heat into the attic. You might also be putting your home at risk for a fire. For increased safety, change these lights to an IC-rated fixture, which allows for direct contact with insulation and insulate over the lights.

    9. Add an ice-and-water barrier. If you’re reroofing, it’s time to add an ice-and-water barrier. This is a great layer of protection. While many regions now require it, it wasn’t always mandated, so your home may not have one. An ice-and-water barrier needs to be added under a roof, so it’s cost-prohibitive if you’re not reroofing — but if you are, it’s the perfect time to add it.

    10. Keep your roof in good shape. One of the best answers to prevent ice dams is to maintain your roof well and ensure you have enough insulation to keep warm air from getting through. Installing a metal roof with a steep pitch can minimize your risk of leaks caused by ice dams.

    Person on a ladder fixing his gutters.

    Quick Fixes to Get Rid of Ice Dams

    While your goal is to permanently stop ice dams, you might need to use a few quick fixes in the meantime. These tips help you stay on top of ice dams and prevent damage to your home.

    Use a snow rake. After a heavy snowfall, give your roof a break by raking the snow off. This inexpensive tool pulls down the snow so it can’t melt and refreeze into an ice dam. Only use a snow rake from the ground or your deck, never from a ladder. And be careful not to break shingles, which can be brittle in bitter cold temperatures.

    Try calcium chloride. Avoid using rock salt as it can damage paint and metal on your home. But calcium chloride can help melt ice and get water flowing again.

    Install heat cables. Mount heat cables along the edge of your roof and through the downspout. That enables snow to melt and run down the proper channels.

    Steam it off. If you have an ice dam already and you can see that there is a leak coming into your home, you’ll want to remedy it as soon as possible. Check with local roofing companies to see if they have a steamer that can melt the ice off the roof without damaging your shingles. If it’s too big a job for just you, hire a roofing professional to steam off ice dams.

    Not having to worry about ice dams can be a huge relief in the winter months. You instantly free yourself from the immediate issues of a damaged roof and leaks. In addition, your home becomes more energy efficient and comfortable as the air quality improves if moisture isn’t sneaking in and forming mold and mildew.

    Person on a roof holding hail in their hand.

    Does insurance cover ice dams?

    If an ice dam damages your roof, don’t fret. It’s common for homeowners insurance to cover ice dam damage. American Family’s standard homeowner’s policy covers sudden and accidental damage from leaking roofs and damage from the weight of ice, snow or sleet.

    If you have more concerns about your roof insurance coverage or you’d like to learn how your homeowners insurance protects your roof and everything under it, connect with your American Family Insurance agent — they’ve got the answers you need.

     

  • Row of colorful new townhouses.
    Row of colorful new townhouses.
    Do I Need Homeowners Insurance for a Townhouse?

    Whether your townhouse is a rental, in a condo association or one that you own, you’ll need insurance for it. While homeowners insurance for a townhouse might seem appropriate, there are a few factors to consider before purchasing insurance. If you’re the owner of the townhome and aren’t part of a condo association, homeowners insurance is right for you — but if you’re part of a condo association, you’ll want to look at condo insurance. And finally, if you rent your townhome, go for renters insurance.

    New townhouse on a sunny day.

    What is the difference between a condo and a townhouse?

    Condos and townhomes may seem similar, but they have a few key differences. A condominium is typically a living space, either a townhome or apartment-style space, that is owned by a condo association and has shared common space among residents that their condo association fees pay for. If a townhome isn’t owned by a condo association, it’s not a condo.

    Townhomes are typically multi-story buildings that share at least one wall with another townhouse. They look a bit like row houses without easements between the buildings. They can be owned by a condo association, rented from a landlord or owned by individual homeowners.

    House with roof damage from a fire.

    What is covered under townhouse insurance?

    There generally isn’t such a thing as “townhouse insurance,” so to understand what’s covered, you’ll need to consider your living situation. If you’re living in a townhome that isn’t owned by a condo association, you’ll want to look into renters or homeowners insurance.

    If you own your townhouse:

    If your townhouse is solely yours and not part of a condo association, you’ll need a homeowners insurance policy to help protect your property. Home insurance for townhouses covers the same things that it would for a regular house, including:

    • Damage from fire, smoke, wind and other disasters or hazards
    • Damage to your home’s structure
    • Theft of or damage to your personal belongings
    • Liability protection if someone is injured on your property

    You can add other coverages to supplement your homeowners policy that can help cover expenses associated with appliance breakdown, flooding or even identity theft. Learn more about what homeowners insurance can help protect.

    For rent sign on townhouse.

    If you rent your townhouse:

    If your townhouse isn’t part of a condo association and you’re renting it, renters insurance can help you protect your personal property in the event of an accident or theft. Renters insurance for a townhouse can help cover things like:

    • Damage to your personal property from a fire
    • Replacing your personal property after theft
    • Liability protection if someone is injured in your townhome

    Even when you’re away from home, your renters insurance follows you wherever you go.

    People around a table, having a meeting.

    If your townhouse property belongs to a condo association:

    Condo association policies typically only cover common areas and the exterior of the building you live in, although some will cover the interior — but only in its original state. To be sure your personal property and any updates to the interior you’ve made are protected, like granite countertops to replace the original vinyl, you’ll want to get your own condo insurance policy.

    Condo insurance coverage helps protect the things not covered by your condo association’s insurance policy. This includes personal property and personal liability coverage, which can help cover expenses if someone is injured on your property. Even if your condo association insurance policy covers some things that a condo insurance policy might, you should consider condo insurance to take care of any gaps in coverage.

    New townhouse living room.

    Get the Townhouse Insurance Coverage You Need

    If you need help assessing your townhome to understand the right type and amount of protection you need, connect with your American Family Insurance agent. They can help you figure out if you need condo, renters or homeowners insurance and what kind of additional coverages you need to protect what matters most.

  • finished basement
    finished basement
    What Is the Ideal Humidity for a Basement?

    The humidity levels in your basement can impact your home and everyone living inside. It can also affect your valuables, electronics and appliances. In this article, we'll discuss ideal basement humidity levels. We'll also give tips to help you address, monitor and manage moisture in your basement.

    Father and son smiling in living room

    Normal Basement Humidity Levels

    Ideal basement moisture levels are between 30 - 50%. Anything below 30% is too low and can lead to structural changes in your home, causing gaps between windows and doors. Aside from health issues, insufficient moisture levels can also cause wood floors to creak and damage your belongings.

    Moisture levels above 50% can lead to mildew, mold and bacteria growth. That environment can cause serious health issues. Excessive moisture can also damage walls and carpets, causing your home and belongings to rot.

    Locating Your Basement Humidity Source

    One of the best ways to address basement humidity levels is to manage the moisture at its source. While consulting with a professional is always helpful, you can start your search using the following methods.

    Seal Off Drafts

    Gaps and cracks in windows, doorways and walls can cause excess moisture to collect in your basement. Sealants like caulking and weatherstripping can help close the gaps and fix the issue.

    Maintain Your Sump Pump and Vents

    If your sump pits and drains are not airtight, the excess moisture from the pipes can create a humid environment. Maintaining your basement's vents and sump pump can help you manage moisture levels. Consider getting it checked by a professional once every three to four months for optimal performance. 

    Repair Leaks

    Leaking pipes, washing machines and water heaters can affect your basement's humidity. They can also cause other issues, such as a spike in your utility bills.

    To spot them, look for wet spots, rust or condensation around these areas. Beyond helping you maintain healthy basement humidity levels, it helps you catch costly leaks early.

    Clean Gutters

    Clogged gutters can pool rainwater and melting snow around your home’s foundation. Consider positioning gutter spouts to draw water away from your home. Additional outside water can saturate your basement floors and walls, increasing moisture levels.

    woman in living room with cat and dehumidifier

    Managing Your Basement Humidity Levels

    Some humidity issues are more severe than others. However, there are several accessible tools you can use to maintain appropriate moisture levels in your basement and home. Consider the following tips.

    Dehumidifiers

    Several dehumidifier types, such as refrigerant, desiccant and whole-house ventilation systems, are available. They can help you manage moisture levels in your entire home, a single room or a crawlspace. All serve one purpose: To remove excess moisture from the area.   

    Before purchasing yours, consult an expert. They can help you find a suitable model and size that best addresses the humidity in your basement.

    Exhaust Fan

    Another excellent way to manage your basement's humidity levels is to keep it well-ventilated. Installing an exhaust fan is a great option if you can't accomplish that naturally.

    An exhaust fan should be installed in a window or exterior-facing wall to draw the moist air away from your basement. As a bonus, exhaust fans can circulate the air, which helps control unwanted odors.

    Chemical Absorbents

    If you need a fast-acting, inexpensive, moisture-removing option, chemical absorbers, such as silica gel, may be able to help. They're typically sold in home improvement stores and can be placed in other parts of your home as well.

    Humidity Monitor

    A humidity monitor can help you track your basement's humidity levels. Some dehumidifiers and exhaust fans come with them built in. You can also buy a stand-alone model that hangs on your wall.

    Water Leak Detector

    Water leak detectors help you catch leaks early and boast a variety of capabilities, such as sending real-time alerts to your phone.

    You can install them on sinks, appliances and water heaters. Getting one may also qualify you for our smart home discount.

    father and daughter doing laundry

    How American Family Insurance Can Help Protect Your Home

    Our standard home insurance may help protect you from sudden, accidental water damage. Qualifying events may include burst pipes or broken-down appliances.**

    If you want more protection from unexpected losses, talk to your American Family agent about the following coverages:

    • Hidden Water coverageProvides a broader net of protection for leaks you can’t see within the walls, floors, ceilings, cabinets or anywhere else that isn’t visible in your home.***
    • Inland Flood coverage: Helps you recover after a flash flood or other qualifying event.*** 
    • Flood insurance: With the National Flood Insurance Program, we offer flood damage protection for your home and possessions.†
    • Water back-up coverage: Helps mitigate the cost of repairs caused by water coming back into a home due to a backed-up drain or an overflowing sump.* 

    mother and daughter putting toys away

    *Coverage provided by adding the Inland Flood optional endorsement. This endorsement does not satisfy mandatory flood insurance coverage should it be required by your federally regulated lender for your home mortgage or loan. This insurance product is not affiliated with the National Flood Insurance Program (NFIP). Please check with your agent and read the policy and endorsements for exact details on coverage limits and exclusions. Coverage applies after the property deductible has been met.

    *This information represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Exclusions may apply to policies, endorsements, or riders. Coverage may vary by state and may be subject to change. Some products are not available in every state. Please read your policy and contact your agent for

    **Hidden Water Damage coverage is an optional coverage. May not be available in all states. Some restrictions apply to seasonal homes and manufactured homes. The leak must occur from within a plumbing, heating, A/C, fire sprinkler or a home appliance. Refer to your policy documents for coverage limit details. Coverage applies after the property deductible has been met. Mold damage limited to coverage limits provided by your homeowners policy.

    †American Family Insurance is a participating company in the National Flood Insurance Program (NFIP). NFIP is managed by the Federal Emergency Management Agency (FEMA), a component of the U.S. Department of Homeland Security (DHS). Flood insurance is a separate policy underwritten by NFIP.