Insurance Tips for First-Time Home Buyers

Buying your first property is an exciting but stressful time. With the bills that start to pile up, it can be difficult to stay on top of everything. Despite this, it is important that you do not try and sell yourself short when taking out home insurance. Finding value for your money is as equally important as securing reliable – and the right – coverage. In some cases, the cheapest coverage can often be the least protective. To help you purchase your first home insurance policy as a new property owner, take a look at these tips.

Cheap coverage may not be the best value

Although you may know you need coverage because your mortgage lender requires it, you do not want to find the first and cheapest policy you see online. Cheap insurance often means that it lacks coverage, which is essential when the worst happens and you need financial help after a peril. Be sure to get a number of quotes from different providers and compare the benefits they offer. Most insurers will cover standard hazards, but be sure to look at the coverage as well as the bottom line price.

Know the rebuild cost

When working out the cost of home insurance, you should think about how much it would cost to rebuild your house and its content. You will need to insure your property for the cost of rebuilding it. Keep in mind that this will not be the price you bought it for. A valuation will advise the rebuilding cost of the house, and the minimum amount that you must insure it for.

Cover your belongings

Be sure to have your content insured at an adequate amount and do not forget to specify the most important items. Your home insurance will cover your belongings from damage, such as fire, theft, and storms. If you have items of high value, you may need to secure additional coverage. Your art, jewelry, musical instruments, antiques, and collectibles will need more coverage to protect their entire value.

Know your deductible

Your deductible is the amount you pay out-of-pocket in the event of a claim. It must be paid before your insurance kicks in. Ensure you keep this amount at an affordable-to-you cost so that you do not have trouble paying it which could delay your policy from stepping in to help.

Understand what is excluded

There are a number of exclusions in each policy which are important to note. Read through your policy or ask your agent to run through it with you so that you understand where your coverage ends. You may feel you need additional coverage or you may wish to extend the limits so that your property, belongings, and finances are better protected.

Update it often

Home insurance is not a set-it-and-forget-it coverage. It is a policy that you constantly need to review and update. If you buy or sell items, make updates to the house, or find your building is more exposed to risks, contact your insurance agency to make changes to your coverage.

Confused? Help is at hand. Find your quality homeowners insurance by contacting the team at Mayer Insurance today. We serve Apple Valley and neighboring cities in Minnesota with quality coverage.