Are you looking to buy your first home in the near future? If so, then congratulations are certainly in order! Being a first-time home owner can be an extremely rewarding experience. However, it can also be a bit overwhelming; upon closing on a home, there are many considerations that need to be kept in mind and many responsibilities that are inherently taken on.
One of the biggest responsibilities that comes along with being a home owner is that of protecting one’s investments. This means taking the time to adequately insure one’s home and property through a reputable home insurance company.
Of course, buying home insurance for the first time can be a bit stressful and confusing. Many home owners are not sure how much coverage they will need or how much to expect to spend on monthly home insurance costs. Fortunately, most mortgage companies these days build the cost of insurance into the monthly mortgage, so it is one less payment that the home owner needs to worry about. Still, this does not mean that shopping around for insurance and doing research to determine how much coverage will be needed is not a necessary step. In fact, it is actually a quite important one for home owners who want the peace of mind in knowing their homes are properly insured and for a fair price.
When buying home insurance for the first time, it is generally a good idea to start by receiving a quote from your current car insurance company. Often times, these companies offer discounts for those who bundle their insurance policies, so this can save you a good amount of money. Of course, it is never a bad idea to check with other insurance companies and request quotes to ensure that your current company is giving you the hands down best deal.
From there, you will also need to decide exactly how much coverage you need. In general, it is best to buy enough coverage to completely replace your home in the event of a major disaster, such as a large house fire or a tornado that completely destroys your home to the point that it needs to be completely rebuilt. This is a better option than simply insuring a home for its current appraised value, even though it tends to be a bit more expensive. Many home owners will agree that it is more than worth having the additional peace of mind. After all, a home is often the largest investment a person makes in a lifetime. Why not protect it to the fullest extent if at all possible?
Upon determining the correct amount of coverage and shopping around for the best deal, home owners should purchase their home insurance policy and make sure that it goes into effect the same day the house is closed on. At closing, it is possible that home owners will need to bring a copy of the insurance documents to prove that the home is insured before being able to close on the deal and get the keys.
After purchasing insurance and moving into the home, it is also the home owner’s responsibility to keep the insurance company up to date on any changes that need to be made in the policy itself. For example, if the home owner decides to add a deck to the home, this will need to be reflected in the coverage so that the home is protected to the fullest extent possible. Generally, it is best to alert the insurance company to a change in policy as soon as the home owner becomes aware of it. This can often be done by simply calling or sending an e-mail to one’s insurance agent. From there, he or she will send an updated insurance quote and have the policy updated in no time to reflect the new changes.
Overall, being a first-time home owner can be very exciting, but it also comes with a lot of added responsibility and stress. Fortunately, by simply following the steps and advice outlines above, shopping for home owner’s insurance does not need to be a difficult task. From there, you can focus on getting settled into your new house and turning it into a home.