Buying Your First Home? Tips To Help You Purchase Your Home Insurance
If you're in the market for your first home, it's time to start planning for your first home insurance policy. Next to the purchase of your home, your insurance coverage may be the most important investment you'll make. Here are some simple tips that will help you choose your home insurance coverage.
Get a Jumpstart on the Search
If you're going to be purchasing your first home, get a jumpstart on the insurance search. Waiting until the last minute could cause some unexpected problems for you. First, you may not have the coverage you need when escrow closes. Second, you could end up paying more for the coverage you get. To make sure you have the right coverage for your home, and that you don't pay more than you need to, start shopping for insurance as soon as you enter the escrow phase. That way, you have a policy in place as soon as escrow closes.
Identify Policy Coverage
If you've never shopped for home insurance before, you may not know what to expect. One aspect you need to familiarize yourself with is the different types of policy coverages.
When it comes to protecting your home, there are some problems that your home insurance policy won't cover. For instance, if your swimming pool overflows and floods your home, your insurance policy probably won't cover the damage. However, if your pipes freeze during the winter and cause extensive flooding inside your home, that damage will be covered.
You probably don't want to think about it right now, but there is a chance that your home will be destroyed in some type of disaster, such as a fire. If that happens, your insurance company will take care of the reconstruction for you. However, they'll base the coverage on your policy limits. In most cases, you can choose between market value or replacement costs. When you choose replacement cost for your insurance coverage, you'll receive maximum protection for your home.
Plan for Your Claims Usage
Now that you're shopping for home insurance, it's time to start making plans for your claims usage. You may want to use your insurance to cover all damages that your home sustains. However, that approach can cause your insurance costs to escalate, especially if you file too many claims. To keep your insurance costs as low as possible, save your insurance claims for the big problems.