Introduction
Buying home insurance is a must for first time home buyers. Buying home insurance protects you in the event of fire, vandalism or other types of damage to your home. Buying home insurance also protects you in the event that someone is injured on your property. Buying home insurance is not only something that you should have, it is also something that is mandatory. Your lender requires that you buy home insurance and keep the home insured for the length of your mortgage. This helps to protect their investment in the property.
Step 1
When buying homeowners insurance you should be aware of the fact that not all things are covered in a standard insurance policy. For example, flood insurance is something that you should ask about. It is something extra that you will have to add on to your policy. The same is true for earthquake insurance. If you live in an area that has even the slightest chance of flood or earthquake, it makes sense to add these items to the policy. Even if the chance is remote, think about how much it would cost you if it did happen and you were not insured.
Step 2
Another thing to think about when buying homeowners insurance is the value of the items inside your home. A standard policy will coverage items up to a certain amount. However, you may want to add a rider to the policy if you have valuable items in your home. For example if you have a collection that is worth a lot of money, antiques, artwork or expensive jewelry.
Step 3
Choose the best type of policy when buying homeowners insurance. One type will give the actual value of your home. This means that you will be paid the depreciated value. This is often not enough to coverage the cost of rebuilding your home. You will want a policy that pays out what the cost would be at the time of the incident. One that will not depreciate the value of the home and items inside the home.
Step 4
Save some money when buying homeowners insurance by having your policy for the house with the same company that insures your automobiles. Most insurance companies offer a discount by have both policies through the same company. This will lower the cost of your insurance. You may also save some money by paying for six months or a year at a time rather than monthly. You can check into that with your agent.
Step 5
Speak to your insurance agent about your coverage and listen carefully. Always ask questions and read through everything before you sign anything. This is your home and buying home insurance is your way of protecting your home. Make sure that you have adequate coverage to do that.
Tips and Comments
- You may want to speak to a few agencies to find the one that offers the best coverage at the best price. Not every insurance agent is the same. Shop around.
- Video record items in your home, keep the video where you will have easy access to it should the need arise.
- keep appraisals for any valuable items in your home, along with receipts.
