Home insurance is an essential for first time home buyers and most of the time it is thought of as nothing more than a requirement to purchase the new home. Please don’t think of it this way! Your home is going to be one of your biggest, if not your biggest investment. PROTECT IT! Here are some simple tips to remember on your first home insurance policy you purchase.
The biggest coverage limit on your policy is going to be coverage A. This is the dwelling coverage protection. This isn’t a reflection of the value of the home like so many people think. If I had a dollar for every time someone wanted to insure their home for the amount they are paying for it, then well….. Anyway that’s not how it works. The coverage A amount is actually the replacement cost. This is the cost to rebuild the home new if it were to burn to the ground. An insurance company can’t provide you your old house back. They pay the money (if your properly insured) to rebuild your home new and get you back to where you were. Many times the replacement cost is much higher than the purchase cost. This isn’t to rip you off. It’s to make sure your home is properly insured.
You also need to consider why the prices for affordable home insurance can vary so much from agency to agency. This can happen due to many reasons. Sometimes an agency isn’t all that competitive and that’s simply the best rate they have. In many other cases the agent that has the best price may have raised your deductible much higher, or you might have valuable endorsements left off like water backup. If that’s the case you can end up paying a heavy price later when you don’t have coverage you needed and you try to file a claim.
As a first time homeowner I’m not going to go into all the details and bore you, or overload your brain. Pickup your phone and talk to a professional independent home insurance agent near me!. They have multiple choices to choose from and can spend time working on making sure you have the coverage you need for an affordable and fair price.