Buying a home is filled with a lot of details and it can definitely be overwhelming. It can be easy to overlook the importance of homeowner’s insurance, but it is actually one of the most important parts of buying a home. Homeowner’s insurance will help protect you in the event that something happens to your home. Here are some important tips that will help you before you sign the dotted line on your new home purchase.
Tip #1: Compare coverage between companies.
Your mortgage lender will likely require you to obtain homeowner’s insurance and while you aren’t required to buy from a specific company, you should do your research on various companies and compare coverage, customer service reviews, and other important price details. Most of the time you won’t need to use your homeowner’s insurance coverage unless there has been some sort of emergency or disaster, so be sure that customer service ratings are high. In addition, don’t always look for the lowest price – instead compare value and what you’re getting for the coverage.
Tip #2: Make sure you’re getting the right amount of coverage.
Not sure what kind of coverage you need? Talk to your real estate agent as well as your insurance representative. The most important part of homeowner’s insurance is the level of coverage and you don’t want to pay for more than you really need. Talk about which policies are best for your specific home and area, and be sure that you understand the details of the policies that are offered. Then, determine which coverage works with your budget.
Tip #3: Keep your policy updated.
Once you pick the policy you want, make sure that you keep it up to date. For example, if you decide to put an addition onto the back of your home or if you remodel the bathroom or kitchen, be sure that your insurance company knows so they can adjust your coverage accordingly. This will protect you further down the road in case something unfortunate happens.
If you have questions on what your basic homeowner’s insurance should cover, I’m happy to discuss! Your home is probably the largest and most important investment that you’ll make in your lifetime, so making sure you have the right coverage that will effectively insure you and your family in the event of a problem is priceless.