kitchenIf you are in the process of buying your first home, you probably already have quite a bit on your mind. You need to find a home that is in your price range, in a neighborhood you desire, and ready for sale. You also need to be sure that the home or condo is worth the investment. Here’s a quick guide for first time home buyers to begin to understand the ins-and-outs of a homeowner’s insurance policy. 

More and more young couples are realizing that investing money into owning property, instead of spending it on rent just makes sense in the long term. Once you start the search, you will want to also begin looking into ways to adequately protect your investment as well as your personal belongings through homeowners insurance. 

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Why You Need Homeowners Insurance

Young couples often ask why the added expense of homeowners insurance is really necessary. For most mortgage lenders it is a requirement so that their investment is covered in the case of a fire, natural disaster, vandalism, or theft. Mortgage lenders want to be sure that if a worst-case scenario happens, that their investment in you is covered. 

Personally, while homeowners insurance is an added expense when you are already strapped for money, it is important to protect your home from a loss. Homeowners insurance will protect you from loss of property, belongings, and even liability should an accident happen on your property. Homeowners insurance can also offer temporary housing after a disaster. 

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What’s the Cost of Homeowners Insurance? 

The answer to this is not as straightforward as one would think. It all depends on the house, location, and the amount of coverage you are looking for. 

According to Value Penguin, home insurance rates range on average $952 a year, with some of the more expensive states stretching up to $2,000. Keep in mind that these rates reflect average home insurance rates, which normally would include discounts for the general population like age discounts, claims-free discounts, and in some cases, loyalty discounts.

Cost of homeowners insurance also depends upon whether you take advantage of discounts or bundling. By bundling your home and auto insurance you may be eligible for deeper discounts than by buying separately. 

Tips for First Time Buyers 

As a first time buyer all of this information may seem a bit overwhelming especially when you are purchasing your first home or condo. Here are a few tips from professional agents whose entire goal is to help young couples buy and insure their first home. 

  • Do your research while you are house hunting. Do not leave your insurance research until you have found the home of your dreams. 
  • Don’t just go with the cheapest insurance, find one that is comprehensive and has the best record. 
  • Look into bundling your insurance or choosing an agent that can help you find discounts for your lifestyle. 
  • Use an experienced insurance agent rather than a mortgage lender for your insurance. 
  • Consider renters insurance if you are in an apartment. 
  • Be sure to invest in unit insurance as well as the master insurance if you are dealing with a condo association. 

Do you have questions about your homeowners insurance? Are you a first time buyer looking for information and advice? Call our knowledgeable agents who can talk you through what you need to know.