Buying your first home marks an exciting milestone, but securing the right insurance protection can feel overwhelming. Selecting a plan requires careful planning and research to ensure you get adequate coverage at an affordable price.
Most mortgage lenders require homeowners insurance before closing, so this decision is crucial. Let’s go over how to shop for first-time homeowners insurance so you can secure your dream home.
Research Different Types of Coverage
Homeowners insurance policies offer several coverage levels, with HO-3 being the most common for single-family homes. This policy protects your dwelling and personal property, and it provides liability coverage for accidents on your property.
Basic coverage typically includes protection against fire, theft, vandalism, and weather-related damage. However, floods and earthquakes require separate policies in most cases. Review what disasters commonly affect your area, and consider additional coverage accordingly.
Personal property coverage usually covers 50 to 70 percent of your dwelling coverage amount. If you own expensive electronics, jewelry, or collectibles, you may need additional riders to protect these items.
Compare Quotes From Multiple Insurance Companies
Shopping around saves money and helps you find the best coverage for your needs. Contact at least three different insurance companies to compare rates and policy features.
When requesting quotes, provide accurate information about these elements of your home:
- Square footage and age
- Construction materials and roof type
- Security features and safety equipment
- Location and local crime rates
Many insurers offer discounts for bundling home and auto insurance, so ask about package deals. California homeowners insurance rates vary between companies, so comparison shopping is essential to find competitive pricing.
Understand Deductibles and Coverage Limits
Your deductible affects your premium and out-of-pocket expenses during claims. Higher deductibles lower your monthly payments but increase what you pay when filing a claim.
Coverage limits determine the maximum amount your insurer pays for different types of losses. Ensure your dwelling coverage equals your home’s replacement cost, not its market value. Replacement cost typically exceeds market value due to demolition and debris removal expenses.
Liability coverage protects you if someone gets injured on your property. Most experts recommend at least 300,000 dollars in liability coverage, though higher amounts provide better protection against lawsuits.
Take Action To Protect Your Investment
Shopping for first-time homeowners insurance is manageable when you research coverage options, compare multiple quotes, and understand policy details. Securing the right coverage will protect your largest financial investment, so start your insurance search early in the home-buying process to avoid last-minute stress.
Ready to protect your new home? Contact Saferoad Insurance today for a personalized quote that fits your budget and coverage needs.