Owning a new home is exciting. It represents a key milestone of the American dream. However, it also comes with responsibilities, like protecting the home from fires, theft, and other mishaps. If you're a first-time homebuyer, you probably don't know much about homeowners' insurance. Here are four solid tips to guide you when buying a home insurance policy.
Shop Early for Home Insurance
One mistake many first-time homebuyers make is thinking they first need to move into their new home before buying home insurance coverage. But more often than not, mortgage lenders will require you to have insurance in place before giving you a loan.
It takes time and effort to shop around for a home insurance policy. You'll need to ask for quotes, compare prices and coverages, and check company reviews to ensure you're getting the right coverage. Therefore, start shopping for insurance coverage as early as possible to avoid a last-minute rush.
Know What a Policy Covers and Doesn't Cover
Home insurance covers common exposures, including electrical fires, water damage, and roof leaks. Maintenance issues like pest infestations and mold usually aren't covered. Go through an insurance policy carefully to see what it covers and what it doesn't before purchase. This helps avoid the disappointment of finding out that an occurrence you thought was covered isn't when filing a claim.
Also, keep in mind there are specific policies for different types of houses, such as apartments, condos, new constructions, mobile homes, and older homes. Your policy should reflect the type of house you're buying and its condition.
Consider Additional Protections
Depending on your location and life circumstances, you may need to purchase additional protection on top of the typical coverage. For example, if your new home is in an area that experiences severe weather disasters such as hurricanes, floods, and wildfires, you may require additional policies for these disasters.
If you work from home using expensive equipment, you may take additional coverage to protect the equipment. And if you use some of your items, say a laptop or camera, outside your house, you may want to add away-from-home coverage to your homeowners' insurance policy.
Other extras are available to ensure your home insurance policy serves your needs. Talk to an insurance expert about the options available to you.
Most insurance companies will offer you a discount if you bundle up two or more policies, for instance, a home and auto insurance policy. Besides, it makes insurance easier for you when you don't have to deal with multiple companies.
While at it, check other ways you can use to benefit from discounts. Some insurers can lower your premiums if you make your home more disaster-resistant or install home security systems.
For more information, contact a company like Ronald H. Krupa Insurance Agency.