Knowing what to look for when buying homeowners insurance can be a daunting task. Luckily, just a few smart choices early in the process can lay the foundation for a policy that, like your home itself, stands the test of time.
the importance of homeowners insurance for new homeowners
After the exhausting process of finding the perfect starter home, slapping together whatever homeowners policy is quickest sounds pretty good. Well take a breath — this isn't something you want to rush through.
Home insurance is just as crucial when buying a house as your mortgage rate. For one thing, you'll need to factor insurance payments into your overall home-buying budget. You'll also need to think about whether or not you want to pay your premium out of your home's escrow account.
But most important, having the right home insurance is how you can keep your beloved castle and biggest investment in great shape for years to come. While it's hard to imagine now — with nary a speck of dust on your floors nor leak in your faucets — your new home won't always look so new.
And after tornadoes, vandalism, or plumbing failures, homeowners insurance helps ensure it's your stress level that sinks (not the value of your abode).
4 tips when looking to buy new home insurance
There are a variety of factors that go into creating an effective policy that suits you, and it can be overwhelming for the uninitiated.
Thankfully, we can help narrow the process down and get you off on the right foot. Use these insurance tips for first-time homeowners so you can get the best protection possible.
1. Don't just go for the cheapest coverage
When you're comparing insurance plans, keep in mind that any reliable policy should provide some standard protection. Here's an idea of what to look for buying home insurance for the first time:
- Dwelling protection: The part of your policy that covers the structure of your house as well as any attached pieces (like a garage or sun porch). It's important to get at least enough dwelling protection to cover the total cost of rebuilding your home.
- Personal property protection: Helps cover the amount (and monetary value) of all of your belongings, such as furniture, electronics, clothes, and other everyday items.
- Liability coverage: Goes toward the medical and legal fees you'd face if a friend or visitor get injured on your property and decides to sue.
In addition to protection for your dwelling, personal belongings, and liability, there may be other coverages that come standard with your policy, depending on your insurer. You'll also be able to choose from a wide assortment of optional coverages.
2. Save by bundling your policies
Many insurers — including Esurance — help lower your rates by granting you savings when you purchase multiple policies from them.
At Esurance, we're all about tailoring homeowners insurance to you, which is why we offer a number of easy ways to bundle policies and save. Whether you already have auto, motorcycle, or even golf cart coverage with us, adding Esurance homeowners insurance to the mix means you stand to save on both policies!
3. Understand your coverage limits
When you're calculating how much home insurance you need, keep in mind that you don't have to settle on the default coverage limits.
In many cases, you can increase or decrease your coverage limits for certain types of protection, which means you get the protection levels you want.
4. Review (and improve) your credit score
Not only does a good credit score help you get a better interest rate on your mortgage, it could also help you save on homeowners insurance. In many states, home insurers use your credit rating when calculating your premium to help determine your level of risk as a policyholder.
Got a less than stellar credit? By reducing your spending, getting rid of or reducing debt, and paying your bills on time, you can improve your score. Plus, you'll also benefit from correcting any errors on your credit report.
get a free home quote from esurance
Of course, there are more decisions to be made before your coverage is complete. But starting with these tips can help make buying home insurance for the first time a lot easier by narrowing your search to trustworthy insurers with personalized coverage options and competitive rates.
Start your search for home insurance with a free quote from us or speak with our licensed agents who are available at these times. We provide you with flexible coverage limits, top-notch customer service, and easy online policy management. Imagine — worry-free, affordable protection for your maiden homestead. (See, there really is a first time for everything.)
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