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When you first purchase a house, you may be surprised that your mortgage company requires you to buy home insurance. This is because it not only helps you in case of unforeseen circumstances, but it also protects the lender's financial interests in the property. If you have not purchased home insurance before, below are some tips to help you get the best price and the right coverage.

3 Home Insurance Tips for First-Time Buyers

1. Look for the Best Value

Don't immediately purchase the cheapest home insurance policy you can find. It may not provide the best value. Instead, compare the policy limits, deductible amounts, and exclusions. If you can buy a policy that covers more and has lower deductibles and higher payouts for just a bit more money each month, you will be happy you did if you ever need to file a claim.

2. Insure for Replacement Value

home insuranceWhen choosing coverage amounts, many people buy only enough home insurance to cover the outstanding mortgage amount. Others choose to cover the home's market value. However, replacement value covers the cost to rebuild a home with similar materials at the current construction price. It won't leave you at the mercy of fluctuating home markets.

3. Improve Your Credit Score

You can often reduce your home insurance premiums by improving your credit score. It is one of the key factors that insurers use to determine the risk you present. Carriers have found a correlation between responsible credit use and lowered claims risk. Therefore, better credit ratings often lead to lower monthly payments.

 

To discuss your home insurance options with an experienced insurance agent, contact Pearson & Barnes Insurance in Somerset, KY. They are a locally owned, independent agency with decades of combined experience. They also specialize in auto, farm, business, and life insurance, so they will help with all your coverage needs. Visit their website to learn more about their insurance options, and call them at (606) 679-1450 to request a quote.

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