4 Insurance Coverage Tips For First-Time Homeowners

Ready to become a first-time homeowner? You'll also need to carry homeowner's insurance. The purpose of a homeowner's insurance policy is to protect you from the costs related to sudden property damage; this could include anything from a tornado striking your home, to a house fire. As you're shopping for home insurance for the first time there are a few things you'll want to keep in mind.

Don't Overlook Additional Coverage

While home insurance covers a lot, it's not designed to protect you from every possible thing that could go wrong in your home. With this in mind, it might be wise to purchase additional protection aside from your "standard" homeowner's policy. Flood coverage is an example of additional protection you may want to purchase, especially if you're looking at homes in a known flood plain. In some cases, you might even be required by your lender to carry this type of coverage.

Opt for Replacement Value Coverage

In the event that your home is a total loss, you'll want to make sure your insurance company will pay out the costs related to rebuilding your home from the ground up. This is known as a total replacement value or replacement value coverage. Not all quotes that you'll receive, however, will include this coverage. Many policies only insure your home up to its most recent appraisal amount, or even your loan amount, so be sure to scrutinize coverage carefully.

Bundle Policies for Added Savings

Looking to save money on your home insurance without sacrificing coverage in the process? Look into bundling your policy with another insurance policy, such as your car insurance or motorcycle insurance. Many insurance carriers offer substantial discounts to those who carry more than one policy with them at once.

Don't Put Off Purchasing Your Policy

You will most likely be required to show proof of your homeowner's insurance coverage either at closing or before your closing date is confirmed. With this in mind, it's a good idea to purchase your policy as soon as you've found one to suit your needs and budget. From there, you can simply set the start date of your policy to coincide with your closing date so you're not paying for any coverage dates you don't actually need.

Shopping for home insurance may not be as exciting as shopping for your first home, but it's just as important. With all this in mind, you can find the right coverage to suit your first place!

If you are interested in learning more, click here for more info about homeowner's insurance.