Buying your first home is likely one of the most exciting experiences of your life. You probably also experience some confusion and need guidance along the way. Purchasing homeowners’ insurance for the first time also likely seems exciting, yet confusing, even possibly overwhelming.
However, when you follow some easy tips, you gain the knowledge and guidance to purchase an ideal first-time homeowners policy that both meets your needs and fits within your budget.
Shop around for expertise
When a homeowner asked a Bankrate representative for advice on finding a new agent, the representative advised the homeowner to choose an agent with expertise. When you choose an agent with expertise in homeowners insurance, you have an agent with experience and knowledge needed to help you with a policy that provides the coverage you need. This potentially helps you minimize out-of-pocket expenses and the shock of finding out too late that you are underinsured.
An agent with expertise provides an accurate homeowners insurance quote, without unexpected surprises later. Shopping around for the best insurance company and agent also potentially saves you hundreds of dollars on your first-time homeowners’ policy.
Do not skimp on coverage
Do not jump at the least expensive homeowners insurance quote. Many a homeowner made this mistake only to pay for it later. It is crucial not to skimp on your homeowners’ policy coverage. Speak with the agent to make sure you have enough coverage so that it allows for complete rebuilding of your home if necessary.
The Balance explains, “Making poor insurance choices can cost you hundreds of dollars in the short term,” and that those poor choices “May actually cost you thousands of dollars and a great deal of stress in the long term.”
Understand homeowner insurance coverage
One mistake that some first time homeowners make is incorrectly assuming that standard coverage protects them in case of a flood or earthquake. Coverage for those events requires a separate policy.
Discuss extra coverage with the agent to ensure that you are fully covered. You may not have the ability to prevent disasters; however, you can prevent a disastrous outcome if you ever need to file a claim.
Understand homeowners insurance quote variables
Several factors affect the cost of a homeowner’s insurance policy. Understanding variables helps you understand how your specific circumstances potentially affect the cost of your homeowners insurance.
- If you filed a claim on another type of policy, this could affect your eligibility for certain discounts
- If you had a policy of any type cancelled due to non-payment, it likely affects your homeowners insurance quote
- Assess your credit history and take any steps you can to improve your credit score to help lower your homeowners insurance costs.