How To Buy Home Insurance

Introduction

Buying a new house is an exciting event and may be one of the most important purchases that you ever do. With this thought in mind, you need to make sure you buy home insurance to protect your new investment. Surprisingly, some folks totally forget about purchasing insurance until they are notified at the last minute by a realtor or title company employee when closing the deal. Do not wait until the last minute to buy home insurance. Start shopping for insurance to compare prices and avoid hassles.

 

Step 1

Locate a home insurance company or agent with a solid history and a good reputation. Speak to several agents and companies about your needs before making a rush decision. You should be able to find an agent that you feel comfortable with and understand the coverage he or she is presenting to you. You can research insurance carriers to buy home insurance on the Internet or ask friends, family and associates for referrals. Getting a referral from a trusted friend is often the most reassuring method for selecting home insurance.

 

Step 2

After selecting an agent, you will be responsible for supplying a lot of information about the new home to the insurance company for coverage. Pull out your copy of the contract, and you will probably have to contact the realtor involved in the sales transaction to get additional information. Some examples of required information needed when you go to buy home insurance includes the square footage of the home, the year it was built, location of the home and the type of roof. They may also want to know the age of the electrical system and plumbing in addition to the address of the home.

 

Step 3

You will have several decisions to make when you buy home insurance. This is another reason why you need to be able to discuss concerns with an agent that you understand and can work with. One of the highest priorities is discussing Replacement Cost Coverage. Understand that this dollar amount only includes the house. The land the house sits on is not insured when you buy home insurance. Take into consideration rising material replacement costs and inflation when determining a realistic replacement cost value. Your agent can offer recommendations.

 

Step 4

Discuss recommendations for liability coverage with your agent. Basically, liability coverage is insurance that protects you against claims for property damage and bodily injury that may occur when someone else is injured while on your property. A slip on a rug, or an accident with a fence could happen out of no where, and you need to consider this important coverage when you buy home insurance.

 

Step 5

Deductibles are another important aspect when you buy home insurance. Most people have a home insurance policy with a deductible of $500. Higher deductibles usually mean a smaller premium charge. However, the deductible is the amount you pay out-of-pocket before the insurance company begins reimbursing for damages on the home.

 

Tips and Comments

If your new house is not located near fire hydrants or close to a fire station, it may be necessary to find special insurance companies that provide this coverage. Most insurance companies limit deductibles when you buy home insurance to $1,000.

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