Almost everyone who buys a new home will also have to buy a home insurance policy. Before the closing on the house, many mortgage companies that are giving the loan will want to see proof of the homeowner's insurance policy. This protects their investment in the home in case it gets destroyed or damaged.
There are so many Homeowners insurance companies to choose from that it's hard to know which one is best for you and your home. Many mortgage companies will recommend a Homeowners insurance company that they work with, but that doesn't mean you have to use that insurance company.
Before you jump in and take the first quote you get, it's best to call around to a few different insurance companies and find out which coverage plan is best for you, since each company will have different plans and discounts.
When choosing an insurance company, the first thing you should ask is if they have any special discounts. Depending on the company, you may be able to get discounts for being fire resistant, having a security system, being an older person, or having more than one policy.
Most of the time, a dual insurance discount means that the company will give you a discount if you have more than one type of insurance with them. Check with your current car insurance company to see if they have special rates for loyal customers.
Keep in mind that insurance agents will look at both your credit history and your past insurance history. This is similar to how lenders look at your credit history. This could lead to higher premiums in the long run for people who have been in a lot of car accidents or have bad credit.
Insurance companies are taking a chance on you, and even though they expect to have to help you replace something in your home at some point, if you are already a "high risk" client, you will have to pay for those risks because it is more likely that you will need their help sooner rather than later.
Most basic homeowner's insurance policies will cover both the house and the things inside it for the full cost of replacing them. Because of this, insurance agents will ask you detailed questions about the home you are about to buy, such as how big it is, how old the appliances and heating and cooling systems are, how old the plumbing and electrical system is, and even what style the floors, countertops, and cabinets are.
Even though you might want to save money by lying about the age of the plumbing system or the style of the countertops, remember that you will only get the replacement costs for what you told the insurance company, so it is important to be as accurate and truthful as possible.
Many insurance companies will include insurance for floods, hurricanes, and earthquakes in their quotes. Still, you should ask if any of these risks are covered by the basic policy if you live in a high-risk area for any of them. You don't want to start an insurance plan only to find out later that it doesn't cover everything.
The same can be said for special things like computers, jewellery, and furs. Most of the time, you need a separate policy or a clause in your policy to cover the full cost of replacing special items, so be sure to ask the insurance company about these things.
Overall, it is most important to find a Homeowners insurance company that is reliable, has a good name, and has been in business for a long time. This could mean asking friends or family who already own homes who they use for home insurance, or it could mean looking at ratings to find the best Homeowners insurance companies.
Keep in mind that they will be in charge of a big chunk of your investment and the things inside, so it's important that you feel good about the policy and company you choose.
