Buying a house is the first step to securing your future, and homeowners insurance will put you on even firmer financial footing. Many first-time buyers are surprised to find that insurance costs can affect their house-hunting budget and closing process. If you’re getting ready to become a homeowner, here’s what you should know to be adequately covered at the best rate possible. 

Why You Need It 

Homeowners insurance is necessary for three key reasons. If you are getting a loan to help fund the home purchase, the lender will likely require you to get coverage as a way of minimizing their risk in the investment. The policy also serves to repair or replace the physical structure of your residence and personal possessions in the event of a covered loss. Additionally, it protects against liability claims if someone is injured on your property or you damage another party’s property. 

What a Standard Policy Covers

There are several different homeowners insurance policies available, so it’s vital to understand what each option covers before choosing one. Failing to recognize which perils are included and excluded could lead to significant financial hardship after a disaster. Standard policies offer protection for losses that result from fire, smoke, lightning, hail, falling objects, inclement weather, theft, and vandalism. It’s common for events such as floods, earthquakes, and sewer backups to be excluded. You may need supplemental coverage for these specific risks. 

How Rates Are Calculated             

The cost of homeowners insurance varies depending on how much coverage you need and how likely you are to file a claim. Insurers will look at several factors to determine your level of risk. While considerations can differ from one provider to another, carriers typically look at the location of your home, your credit score, the home’s age and condition, whether you have pets, and how close you live to a fire department. 

The more knowledge you have about homeowners insurance, the easier it will be to shop for a policy. For professional guidance comparing your coverage options, contact Mazzola Insurance. They help the residents of Rochester, NY, find quality protection at affordable prices. After carefully assessing your individual needs, they will help you decide how best to maximize your financial security. Call (585) 266-7130 to speak with an experienced insurance agent, or visit them online to request a quote.