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What first time buyers need to know

A house to call your own is something people dream of and save for. And when your dream home is within reach, it is important to protect your investment with the right insurance so that you can start enjoying your home sweet home. If you are a first time home buyer, we will go through how to buy homeowners insurance.

When looking for a homeowner's insurance, you should:

  1. Shop by home type. Are you buying a bungalow in the 1920s? An apartment? A new building in a new subdivision? Matching your home type to your homeowners' insurance can provide better coverage. (For example: A home under construction policy can begin to protect your new building from risk the moment you break the ground.)
  2. Find the right amount of coverage. Although there are no government requirements for homeowner coverage, it can be long cautious that you are insured in the long run. Consider purchasing adequate coverage for the cost of a complete remodel (including labor and materials). That amount is called the replacement value or the replacement cost.
  3. Learn Your Home History. Learning what happened in your home before you move in can inform you about what may happen in the future. For example, if the property has had drainage issues in the past, you may want to add water backup. If your home has experienced wind damage, review roof protection options.
  4. Insure the details. If your home has unusual or expensive details such as one-of-a-kind woodwork, a smart home system or built-in cinema, you will want to work with an agent to bill the value and replacement cost of these features in your policy.
  5. Understand your deductibles. The deductible of your policy is the part of a claim for which you are responsible. It is important to make sure that the amount is within your budget. Compare deductible options to find what works best for you.
  6. Buy coverage early. Even if you will not technically own your home before closing, your mortgage may require proof of insurance a few days before closing. Not having insurance in place can delay this process. Shop early to ensure a timely closure.

Talk to an independent agent today for more advice on how to buy home insurance. The right homeowners' insurance is easiest to build with an expert on your part.

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