Purchasing a house is possibly the largest investment you’ll make, and as a first-time buyer, you are thrilled to walk through the doors of your new home. But, what also overwhelms you is the complexity, cost, and commitment that is involved. With this large investment, you would not want to risk it all by exposing your new home to damages from unforeseen elements.
What you need is the best homeowners insurance that protects your home against theft and damage. While on the lookout for home insurance, you must work with independent agents to make the right choices.
What Should Your Homeowner Policy Provide?
Although customizable, home insurance has certain standard elements that specify the extent of cost coverage.
Interior and Exterior Damages
The insurance must cover damages to your house’s interior/exterior due to hurricane, vandalism, fire, lightning, or others. It must cover all repairs or even costs for rebuilding. Check if your insurer covers your property’s freestanding structures on the same guidelines as the main house.
Your provider may not account for destruction due to earthquakes, floods, or poor home maintenance. Similarly, furniture, appliances, clothing, and other contents of your house will be covered if they are destroyed in an insured disaster. High-prized items in your home may warrant extra premium payment or even a separate policy for coverage.
Personal Liability for Injuries and Damage
Obtaining a liability coverage will protect you from lawsuits filed by others. If you have pets at home, verify if this coverage extends to them as well. Through an independent agent’s comparison tool, you can compare various insurers for the amount of coverage and choose the best one.
How Much Will Your Home Insurance Cost?
From $900 a year to even $2000, premium payment towards your home insurance varies from one state to another. These are only average rates that include loyalty discounts, claims-free discounts, age reductions, and the rest. However, as a first time home buyer, these discounts may not be applicable in your case. Hence, you must investigate the options and come out with the best homeowners’ insurance that helps you save more and give you the broadest possible coverage.
5 Tips to Save With Homeowners Insurance
Don’t Postpone Your Insurance Purchase: Most often, homeowners are consumed by the process of selecting their first home, home inspections, negotiations, and mortgage approval, and insurance purchase goes neglected. It results in being presented with limited options, making a rushed purchase, and ignoring the coverage you get. Choose a policy, not because it is cheap, but only if it covers all the risks.
Save Time With Multiple Quotes: Get insurance quotes from multiple providers through an independent agent. This way, you are guaranteed to get the best price and policy for your new home. However, ensure that you look at three quotes to the minimum before deciding on an insurer.
Save With Multi-Policy Discounts: if you have multiple vehicle insurance, health insurance, and other policies, check if you can gain a discount by rolling these policies together with your home insurer.
Raise the Deductibles: Deductible is the upfront amount you need to pay before your home insurance claim can be processed. A higher deductible implies you have to pay more from your pocket, but it also reduces the amount you pay as premium. The deductible varies based on the area of your residence. If your home is in a disaster-prone area, a separate deductible may be needed as well.
Improve Your Home’s Security: Installing a burglar alarm system or a smoke detector in your home will let you enjoy some insurance discounts. However, the insurer may place restrictions on the company or exact equipment you need to install for benefitting from the discount.
Check for this recommendation from your insurer and understand how much you will be paying for the device. This knowledge will let you make correct estimations on the amount you can save towards insurance premiums.
While laying hands on a house for the first time is an exciting prospect for homeowners, choosing the best homeowners’ insurance becomes laborious. An insurance policy for your home must not become a burden, but a safe harbor that protects your property and interests. Dealing with this process becomes easier when you research the options, review your situation, and choose a policy that best fits your requirement.
