A new home is a valuable investment, and buying one for the first time is an important and life-changing milestone. However, in order to protect your new property, it’s important to purchase homeowners insurance. Understanding the nuances of your coverage will help you make the right policy decisions. Below, learn what first-time homebuyers should know.

Frequently Asked Questions About Homeowners Insurance

Why is homeowners insurance necessary?

For homeowners who choose to finance, obtaining coverage is required by lenders. Mortgage companies request this for their own protection. They need to be certain that their own investment into your property is protected from specific threats as laid out in your plan. For those who don’t have a mortgage, obtaining coverage is still recommended to protect such a costly asset.  

What does the insurance policy cover?

The average insurance policy provides coverage for a variety of standard risks and perils, including but not limited to fire, smoke, severe storms, theft, vandalism, water damage, and weather-related damage. However, these policies don’t cover damages due to earthquakes, floods, and maintenance issues. Separate coverage may be available for some of these situations.

How much coverage should you buy?

At a bare minimum, you should purchase enough to cover the cost of replacing your home in the event of a calamity. This is based not only on the cost of the home, but also on the average cost to rebuild. Your agency can provide you with a reasonable calculation based on your home’s size and local costs. Personal property is another component covered by your policy. It includes your possessions apart from the home, like appliances, electronics, furnishings, clothing, and food. You should include enough to cover any valuable items that might be lost.

Are there any ways to reduce premiums?

Taking steps to protect your investment can help reduce your coverage premiums. Installing a security system and showing proof to your provider can bring down your costs, as can adding smoke alarms and carbon monoxide detectors to the premises.
 

As a first-time homebuyer, you need an insurance agency that you can trust. Turn to Truax Insurance in Ogdensburg, NY, to provide you with guidance and support during this exciting period. These qualified agents will provide you with a homeowners insurance quote so that you can make an informed decision. Visit the website to learn more about this team and other insurance products, or call (315) 393-3805 to discuss your options.