A Guide To Homeowners Insurance For First-time Buyers

Sep 25, 2020

You’ve done it. You’ve just purchased your first house and you’re all set to move in and meet the neighbors.

No matter what type of house you purchase, a home is a major investment.

Once you’ve closed on your home, the next step is to insure your new asset.

But finding the right homeowners insurance as a first-time home buyer can be daunting.

If you have a mortgage, your lender is almost definitely going to require that you have homeowner’s insurance.

While it may seem overwhelming at first, finding the right insurance for your new home doesn’t have to be a stressful process.

What Does Homeowners Insurance Cover?

As a first-time homeowner, you need to know what your insurance is actually going to cover. When searching for an insurance plan, keep in mind that there are different types of coverage plans, and not every plan offers the same level of coverage.

Here are some pretty basic terms you should familiarize yourself with when searching for an insurance plan:

Dwelling coverage—This type of coverage protects your home’s physical structure.

Other structures coverage—This type of coverage covers things like a detached garage, fence, pool, or shed. Essentially any dwelling on your property that is not your house.

Personal property coverage—This covers your personal property—things like furniture, electronics, etc.

Personal liability insurance—Will cover the damage you may inflict on others and their personal property.

Additional living expenses—Covers compensation for additional living expenses in the event of a home being deemed unlivable.

Medical payments to others—This covers the medical expenses of someone injured on your property.

When choosing an insurance plan, determine what type of coverage you need. If your home doesn’t have any outdoor structures, you probably don’t need a plan that covers other structures coverage. Determine exactly what you’re looking for in an insurance plan—that way you know what to prioritize when finding an insurance policy.

Research The Company’s Claims Satisfaction

Now that you know what to look for in an insurance plan, you should start to do some personal research of your own.

You don’t want to find out down the road that your insurance provider doesn’t have a good history of handling insurance claims.

Some insurance companies will look for opportunities to shortchange you by not compensating you for your losses.

That’s why you absolutely need to make sure you check the satisfaction of each insurance company’s claims prior to purchasing a policy.

Some good sources to start your research with are Google Reviews, The Better Business Bureau, and J.D. Power. These resources can help guarantee you choose an insurance provider that actually takes care of their policy holders.

What Does Homeowners Insurance Cost?

The cost of homeowners insurance depends on a number of factors including the features of your home, the value of your personal belongings, and the amount of coverage you need.

The average price will vary based on your location, your home, and you.

In order to find an accurate quote, you’ll need to visit the websites of the providers you are researching and fill out your personal information (location, household size, etc).

While you’ll need to conduct your own research to receive an accurate estimate, these five insurance companies have recently been ranked as having some of the best rates for Indiana homes in 2020.

Progressive—Progressive boasts over 80 years in business with more than 18 million customers currently. Progressive’s rates for homeowners insurance are also often ranked lower than other competitors.

Liberty Mutual—Liberty Mutual has been ranked as the most trusted homeowners insurance on multiple occasions. Additionally, Liberty Mutual allows you to customize and bundle your insurance for maximum results.

BlueSky Insurance Solutions—This insurance company offers special rates for first time home buyers.

Lemonade—While not as well-known as some of the larger companies, Lemonade is a trending insurance company that allows you to insure your home in seconds.

Insurify—Insurify boasts instant quote comparisons and accurate quotes.

Again, these insurance providers are just five of many options available to you as you shop for homeowners insurance for your first home.

If you’re feeling overwhelmed by the sheer number of insurance plans out there, talking to an expert can help calm your fears and point you towards the perfect insurance plan.

Talk To A Local Agent

If you need help finding affordable homeowners insurance that covers all your needs, talk to a local agent who knows your area well. An agent can help you choose the coverage that fits your needs and can also help determine whether you are eligible for any policy discounts.

Real estate agent, Kim Clark, has years of experience in the Kosciusko area and can help you find an insurance plan that works for your life. Contact her today!

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Our team is ready to to help you on this journey. Please contact us to start the process of home buying or selling!