Tips for Buying Home Insurance for Your First Home

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Tips for Purchasing Insurance

You are a first-time home buyer, and now you need home insurance. It’s time for you begin to think of protecting your new acquisition. This is where home insurance comes into play. Ensuring your home is an essential task because your home is a significant investment and it needs the correct coverage. Not having coverage can wreak havoc on your finances and your life. When shopping for home insurance for your first home, here are some tips to make sure you get the correct coverage with a company that cares about your home as much as you do:

1. The cheapest coverage is not always the best choice

Always look for the best value for the money. Get different quotes from different insurance companies. Check the benefits and make a comparison. Do they cover theft, fluid, storm, and accidental damage?

2. Know the home insurance benefits

Make sure you ensure your content and specify the valuable items. You may opt to extend your coverage for your other important belongings like jewelry, tablet, painting, or laptop. Ask if your policy comes with home rescue service that you can use in case of roof damage, broken locks, and boiler breakdowns. These can be added in your can as an optional extra.

3. Know what is not included

In every home insurance policy, it usually consists of some exclusions that you need to know and understand. Make sure you abide by what is written in your contract. In case you want to adjust your policy, inform your insurer so they can make some changes in your agreement. Keep in mind that if you leave your house for more than 30 days, your home insurance becomes invalid. If you need to leave your house for a long time, ask some relatives or neighbors to check on your house from time to time.

4. There will be excesses

Home insurance has some risks involved in the coverage. Your policy includes surpluses, in which you will pay for the amount of your first claim. For example, there is a power outage, and the contents of your refrigerator are ruined. The cost of replacing them can get really expensive. Ask your insurance agency about the excess in your policy.

5. Determine your rebuild cost

As you and your insurance carrier are working on your home insurance contract, including the amount, it takes to rebuild your home including its contents. The dollar amount is determined during the valuation before the approval of your loan. The mortgage broker and the bank are the ones who conduct the assessment. With some help from your insurance agent, you can get a personalized home insurance policy. You are able to protect your home from various risks.

6. Pick an insurance company you are comfortable with

Make sure you pick a company you feel comfortable with when it comes to home insurance. Check references and do your research. How long has the company been around? Talk to customers that have dealt with the company for a claim. Where they satisfied with the insurance company? Are you comfortable asking any questions with the agents at this company?  These are questions that you need to ask yourself.  Not being at ease with the company providing insurance on your home is unnecessary.  Look online to see customer review on social media. Also, ask the company directly for references. If they offer excellent customer service, the company will not have a problem giving you several references.

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