4 Tips for Buying Your First Home Insurance Policy
Strictly speaking, you’re not legally required to have home insurance. However, the bank who holds your mortgage does require it. The consequence of letting the insurance policy lapse is that you are considered in mortgage default. The bank won’t foreclose on your home, but they will arrange for the insurance to be placed back on your home, and the new insurance is often expensive. When insuring your home, you should make sure it’s insured for approximately 80% or more of its actual value.
In the long run, finding a home insurance policy on your own and never letting it lapse is good for both your budget and peace of mind. The good news is that there are a few things you can do that will help you obtain a great policy at a reasonable price.
Start Shopping for Home Insurance as Soon as Possible
You don’t want to put off shopping for home insurance until the last moment. It’s something you should consider even before closing on your house. Set aside a few hours and compare the options offered by different companies. Avoid the mistake that most people make and look at what the policy covers rather than just the premiums. This is also the point when you should think about how big a deductible you want.
When comparing how much the different insurance companies charge for a home insurance policy, don’t forget to inquire about bundling things like home insurance, car insurance, and pet health insurance. The bundling can lead to some significant savings.
Schedule an Inspection
When you are in the process of purchasing a home, there is usually an offer to inspect the house for problems. This is something you want to take advantage of. Not only does the inspection alert you to issues that you can repair before they turn into costly problems, but by identifying and resolving issues, you could also lower the cost of your home insurance policy.
Find Out How the Insurance Company Handles Claims
Most homeowners are quick to check how long it usually takes for an insurance company to pay out when they file a claim. What few stop to consider is whether the company pays to replace any damaged materials (such as shingles, broken railings, damaged outbuildings) or if they offer the actual cash value. When an insurance company says they’ll cover the replacement cost, it means that they’ll pay what it takes to replace whatever was damaged. If the company indicates that they prefer to pay actual cash value, it means they’re willing to pay for the damage, but not until they’ve determined what the value is after they determine how much depreciation there has been.
Consider Letting an Agency Handle Your Home Insurance for You
As a first-time homeowner, you already have a great deal on your plate. The stress of trying to manage everything can make it easy for things such as handling your home insurance to fall through the cracks, which is why some first-time homeowners prefer to let an agency like Texan Insurance handle things. The agency works with a large group of different home insurance providers and is willing to handle all the mundane details of handling a home insurance policy. The duties a good insurance agency handles include:
- Shopping for better rates
- Advocating claims
- Examining how much coverage each plan provides
- Makes sure billing is taken care of on time
- And more!
The agency works as a liaison between you and your home insurance company but is always in your corner.
Texan Insurance has a long history of helping first-time homeowners successfully find the perfect insurance plan. Contact us to learn more about how we can help you with all of your home insurance needs.