Buying a home for the first time allows you to set down roots and create a more permanent place where you feel most comfortable. To ensure you feel truly at home, you’ll want to secure a homeowners insurance policy that protects your property. However, just like the house-buying process, there are certain tips you should know before signing on the dotted line. Below are five aspects to be aware of when it comes to purchasing insurance for your first home.
5 Factors First-Time Homebuyers Should Know About Homeowners Insurance
1. Shop Around for Rates Ahead of Time
The home-buying process is overwhelming enough, so don’t put added stress on yourself by waiting to purchase homeowners insurance. Call multiple agencies to determine which one can give you the best price for the greatest amount of coverage. You’ll also need time to decide what type of coverage you need. You’ll make a smarter decision when you don’t have to juggle buying a home and insurance at the same time.
2. Consider How Insurance Costs Affect Your Mortgage
Depending on the specifics of your mortgage, your homeowners insurance premiums may be paid through an escrow account. The premium amount is then tacked onto the mortgage payment you make each month. Many first-time homebuyers don’t realize this. As a result, it’s crucial to add insurance costs to your mortgage when taking out a loan.
3. Bundle Your Policies With One Agency
You can save a lot of money by having all of your policies with a single agency. For example, bundle your homeowners insurance with your auto insurance to benefit from lower rates. In addition, don’t automatically go with the cheapest option. Make sure the company you choose has a strong track record when it comes to filing claims and paying their customers. If something were to happen to your house or other assets, you want to know it’ll be handled in a timely and professional manner.
4. Get a Home Inspection to Help With Insurance Costs
You’ll likely get a home inspection before purchasing a home to confirm it’s safe, up to code, and in livable condition. Use that inspection to identify problems with the house that can be repaired to lower your insurance costs. This is another reason it’s smart to start shopping for policies ahead of time because you can speak with agents about how certain repairs will impact premiums.
5. Your Insurance Cost May Be Different Than the Previous Owner’s
Some of your living costs, such as electricity and water usage, can be estimated by asking the previous owner. However, homeowners insurance is not one of them. Your insurance costs will depend on a number of personal factors, such as your age, job, and credit score, in addition to the location and value of the house.
If you’re a first-time homebuyer who wants to find a customized homeowners insurance policy, Zimmerman Insurance Agency in High Point, NC, will help. Their goal is to provide their clients in the Piedmont Triad region with complete insurance service and coverage for the ultimate peace of mind. In addition to homeowners insurance, they also offer car, motorcycle, boat, and commercial insurance. They’ll provide you with the details you need to make an informed decision about your coverage. Give them a call at (336) 883-6512 to schedule a no-obligation consultant, or visit their website to learn more about their insurance products.