Now, insurance too, has a way of eating your profits away. So you need to do this very carefully. Firstly, check out what kind of things you need to cover in your insurance policy. Secondly, check out the area itself, does it have higher insurance policies? This might be the case if you're choosing to invest in an area that is highly susceptible to natural disasters. If you find out that the house you're interested in falls into this category, well then, this house may not be worth purchasing. Once you've gotten these into order, the next step would be to start getting some information on insurance companies and compare their rates. Go for one that will be easy on your wallet.