Buying a home for the first time can be an exciting and overwhelming experience. But don’t let your excitement and plans for your new home overshadow the fact that you’ll also need to buy homeowner’s insurance.
There are many things to consider when purchasing homeowner’s insurance and it’s important to understand why you should have it. Homeowner’s insurance helps cover costs of damages to your home from fire, lightning, vehicles, smoke, theft, and more. If damage does happen to your home, insurance will help cover repair costs, replacement of your personal belongings, and temporary housing if necessary. If anyone is injured in your home, insurance will also help cover those costs.
How Much Coverage Do I Need?
A standard homeowners insurance policy will cover liability up to $300,000. To determine what you may actually need, have an appraiser walk through your home and estimate how much it would cost to completely rebuild from the ground up. If there are any unique or expensive details you know you would want to replace, make sure you point them out so they can be figured into the cost. Once the cost of your home has been determined, you’ll want to take it back to your insurance lender.
Shop Before you Buy
Don’t feel you have to buy from the first company you come across. While many people will bundle their homeowner’s insurance policy with their auto and personal property for discount reasons, you should still shop around. One reason is because the deductible each company offers may differ. You want to be comfortable paying the deductible if you ever have to make a claim. Policies with higher deductibles will cost less.
Make sure you ask about discounts. While your insurance company most likely offers a discount for bundling, do they also offer discounts for the type of roof and its age, if you’ve never had to make a claim for your home, and your insurance score.
Once you’ve decided which company you’re going to go with, decide on the type of coverage you need. Different packages will protect you against different types of damage. Based on the value of your home you’ll want to choose the best package for you. This is something your agent will be able to go over with you.
Finally, make sure you read through your policy very carefully. Make sure you understand that you are responsible for what’s stated in the contract. If you need clarification at any point in time, ask your agent before signing the dotted line. It’s best to be clear and not have any surprises arise later on. Check in with your agent once a year to see if there’s anything you need to update or add onto your policy. This would be if you make any updates or additions to your home that increase the value. You’ll want to have your policy cover those changes.
Where Should I Make My First Call?
To Compass Insurance of course! We work with over a dozen different carriers and can take care of a lot of the leg work for you. We will shop around for you finding the best policy to protect you and your home. Our agents are on standby ready for you call, whether it’s purchasing homeowner’s insurance for the first time, renewing your policy, or questions about your current policy.