Buying your first home is an exciting and monumental step in anyone’s life, but to make sure this moment is as stress-free as it should be, you need to educate yourself on home buying, and there are quite a few things to learn.
You need to consider factors such as your budget, location, and which realtor you want to use.
One of the most important aspects of this process is buying house insurance.
Here are some of the key do’s and don’ts of buying house insurance, so you can start your homeownership journey on the right foot.
Do: Get Comprehensive Coverage
A comprehensive insurance plan may cost you a bit more up front, but it’s worthwhile when you consider the peace of mind you’ll get as a result.
Comprehensive insurance plans will cover damage caused by nearly any type of peril, except those listed on the policy’s exclusions.
Common policy exclusions could be but are not limited to:
- Maintenance-related claims
- War or terrorism
- Nuclear accidents
- Fraudulent losses or intentional damages
In addition, many mortgage lenders require you to have a comprehensive insurance plan in order to grant you a home loan or to grant you an unconditional home loan.
While it’s not necessarily a legal requirement, it gives mortgage lenders confidence that you’re taking all the necessary measures to look after your home.
Don’t: Underestimate Your Personal Property
When shopping and applying for home insurance, make sure you don’t forget any of your personal belongings.
If you do, you could find yourself underinsured, and you may lose out on a lot of money if an emergency does occur.
When writing your home inventory list, account for everything, including your cutlery, toiletries, curtains, and even your dishrags.
You’ll also need to include the following details in your home inventory list:
- Description of the item
- The make, model or serial number of the object
- Cost at the time of purchase
- Location of purchase
- Date of purchase
- Receipts (if you have them)
- Estimated cost to replace the item today
If you want to rest assured that you’ve got the coverage you deserve, be sure to include all these details in your personal property list before submitting to your insurer.
Do: Compare Various Home Insurance Providers
When it comes to buying home insurance, you want to make sure you’ve weighed all your options to make sure you’re getting the best policy, price, and provider to fit your situation.
The most effective way to do this is to compare several insurers and various plans to assess what choices you have on the table.
Do extensive online research and reach out to insurance providers directly to see what they can offer you.
To facilitate the process, consider keeping a written record of each insurance company, their service offerings, and their prices.
Having a document to refer back to will streamline your search and help you pick the best fit for you.
If that sounds too daunting or time-consuming, you can also consult an insurance broker who can take care of that process.
They can offer some valuable expertise into the insurance field that could help you out significantly.
Don’t: Be Afraid to Change Insurers
If you decide on a house insurance plan and ultimately determine that it’s not the right fit, don’t stress.
There is often trial and error when it comes to trying anything new, and home insurance is no exception.
If you’re not happy with your insurer and you’ve been unsuccessful in working through things with them, don’t hesitate to shop around a little.
You shouldn’t be tied to an insurer that doesn’t serve you.
Do some online research into other insurance companies, who will almost certainly be willing to provide you with the level of service you’re looking for.
Do: Research Your Policy
If you think you might have found the home insurance policy you’ve been looking for, the only way to be sure is to research it extensively.
Read through the plan from start to finish to make sure you understand its level of coverage.
You’ll want to know how your plan handles issues like natural disasters, pollution, damage caused by accidents, and more.
Choosing the right house insurance plan is key in gaining the peace of mind you deserve when diving into homeownership.
By following these tips, you’ll optimize your home insurance selection process. Best of luck on your hunt!