Home Insurance for First-Time Homebuyers: What You Need to Know
Purchasing your first home can be a special milestone and one of the most memorable moments of your life. However, while your new home can be an exciting acquisition, it also likely represents one of the most expensive investments you’ll ever make. This means that you’ll typically require homeowners insurance and cannot afford to overlook the potential complexity and nuances that go into making sure you have suitable coverage.
What Is Home Insurance?
This type of coverage, also known as homeowners insurance, is often seen as essential to purchasing and owning a home. Although you may be hesitant to add another bill to your regular expenses following such an expensive commitment, the costs of not retaining suitable insurance could be far more significant down the road. The right policy can cover various losses, including damage to your home, lost or stolen belongings, personal liabilities and additional living expenses should you be forced to vacate the premises temporarily.
Is Coverage Required?
There are no legal requirements regarding home insurance. However, you may be subject to other obligations. For example, if you’ve enlisted the assistance of a mortgage lender to purchase your home, most will require you to carry certain levels of coverage as long as your loan remains outstanding. Other parties, such as homeowners associations, may impose their own mandates.
When Do I Need to Have Insurance?
You should be sure to have insurance as soon as you close on your home. You may be required to show proof of coverage before you’ll be able to close and get the keys to your new residence. Given these potentially stringent requirements, you may want to start shopping for home insurance well before your closing date.
What Else Should I Know?
When deciding about your home insurance, you should be aware of key terms that may be listed in your policy. Be particularly mindful of the following:
- Premiums are the amount you’ll pay regularly (e.g., monthly) to maintain coverage.
- Deductibles are what you must pay out of pocket before your carrier will contribute to covered losses.
- Limits are the maximum amount your insurer will contribute.
- Exclusions are specific events or perils expressly not covered by your policy.
Get the Right Coverage
At Bennie Brinson Insurance, we’re here to help you get the right coverage for your new home. Contact us today to learn more or get a free quote.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
Categories: Blog