Home Insurance for First-Time Buyers
Buying a home is an exciting process, but it is also complicated. There are a lot of steps involved, as well as a lot of costs to consider. When it comes to buying a home, you are not only paying for a mortgage but also home insurance. You will want to make sure you budget for it, as it can cost several hundred dollars a month or more.
Homeowners insurance pays for damage that your home sustains due to perils such as fires, windstorms, theft, and vandalism. A standard home insurance policy covers your home and other structures as well, such as a garage or shed. Most policies also cover personal property and provide coverage for:
- Loss of use. This applies to you if you need to leave your home temporarily while it is being repaired for a covered claim.
- Personal liability. This applies if you are sued for injuring someone else or damaging their property.
- Medical payments. This applies if someone is injured while on your property.
Keep in mind that home insurance is not the same as a home warranty (which often covers general wear and tear) or private mortgage insurance (which is insurance for your lender if you put down less than 20% on a conventional loan).
If you are looking for home insurance for the first time, the options may seem overwhelming. Here is where to start.
Understand Your Needs
Assess your home’s replacement cost (not market value) to ensure you get adequate coverage. List valuable belongings to estimate personal property coverage needs. Consider risks like floods, earthquakes, or high-crime areas that may require extra coverage.
Compare Multiple Insurance Providers
You can use online comparison tools to get quotes. If you already have a different type of insurance, such as auto insurance, you can ask your agent if they offer home insurance. They can give you a quote if they do. If not, check with other major insurance companies. You can also work with an independent agent, who can do the research for you and compare various policies.
Read Customer Reviews and Ratings
Check the rating by looking at the Better Business Bureau. You can also check consumer review sites like Trustpilot and ask for recommendations from friends, family, or real estate agents.
Understand the Policy Details
Compare deductibles and coverage limits. Keep in mind that while higher deductibles lower premiums, they increase out-of-pocket costs. Look for exclusions, as standard policies don’t cover floods, earthquakes, or certain personal belongings. Check into endorsements, which are optional coverages for home offices, valuables, and other specific assets.
Contact Us Today
Understanding insurance can be complex. If you are a first-time homebuyer, you may have a lot of questions.
Hartman Insurance Agency, Inc. is here to take the mystery out of home insurance. Our team is based in Saline, Michigan, and we will go above and beyond to ensure you have the coverage you need for your home. Contact us today to learn about your options. Schedule a consultation today by calling (734) 999-4190 or filling out the online form.