Insurance Needs for New Homeowners

Congratulations! You have bought a new home! You have made a wise and sound investment, but have you fully covered your home and all that it contains? A home is not the brick or wood that it is built from, it is not just a place to keep all of your stuff. This is where you live, raise a family, and it is your shelter from the storms of life, so you need to protect it. And you need to protect all of your stuff in it too.

If you have a mortgage, and most people do, it will more than likely be required that you carry at least a minimum amount of insurance on the home. They really do not care about your stuff that is inside, only the part that will cost them money if something happens to the house. Do not allow yourself to believe that this small amount of insurance is going to be enough simply because it satisfies the mortgage holder. As long as their investment amount is covered, they do not ask for more, but what about all of your clothing, your personal items, your collection of Flintstone glasses?

Make a list of your belongings, and get appraisals on things that may have a high value. Take your list to an insurance agent and get a review of property worth and a rate quote. Now, go and do the same with another agent- do not buy until you have compared rates from at least two companies. Yes, your house is worth all the work, but if you can save some money on a good premium, then by all means, do so.

Get Competing Quotes

What is the zip code of the property? Is this home a new purchase?(purchased in the last 30 days or not yet purchased) Yes No Are you currently insured, or have you been insured in the last 30 days? Yes No

Some mortgages are written so that the insurance and property taxes are part of the actual principal payment each month. That is fine, but again, does not fully cover the replacement of your personal items. Familiarize yourself with insurance terms before your actual closing, and make sure that you ask for explanations on anything you do not understand. Most closings are done with the benefit of lawyers, but they can often forget that not everybody can speak their jargon, so always ask if you are unsure.

There are ways to save money when buying your insurance policy, but the best is to find an insurance agent that you feel you can work with and that you can trust. The best agent can show you further ways to save some money on premiums and still protect this investment for all concerned. Also, keep in mind that there are limits to most policies, so find out up front what is and what is not covered. For example, in most cases, flood insurance must be purchased separately from your regular homeowner’s insurance policy.

Always know exactly what you are getting before signing your insurance policy, again, if you do not understand, ask questions until you do.

Your house is a major investment in time and money, so why wouldn't you invest a little extra time to make sure you are getting the very best insurance coverage for it and all the little things that it holds inside?