Purchasing the right home insurance policy when you buy a home protects your investment in your property. Unfortunately, first-time home insurance buyers often make some common mistakes that detract from the quality and usefulness of the home insurance coverage they get.
The following are six mistakes you need to avoid when you're buying home insurance for the first time:
Opting for the cheapest coverage available
Buying a home and home insurance for the first time can feel like an overwhelming experience. You might feel some stress about the prospect of affording everything. However, don't shirk on home insurance, or it could come back to bite you down the road.
You need to find the insurance policy that offers the most value. You shouldn't be tempted by the cheapest policy, because it might not provide adequate coverage for a costly accident that's right around the corner.
Not knowing how much it would cost to rebuild your home
One of the most important numbers you need to know to pick a policy offering adequate coverage is what the rebuild cost for your home is.
You can get an accurate number on your home's rebuild cost from your mortgage broker or mortgage provider. Your mortgage lender is going to want to make sure that you have adequate coverage to cover the entire rebuild cost of your home to protect their investment in you as a borrower.
You need to have enough coverage to cover the entire rebuild cost of your home to protect your property.
Not being constantly aware of just why you need coverage
Staying focused on the reasons why you need coverage can help you to find the right policy. In particular, think about what you own and what parts of your new home are the most valuable.
Remember that home insurance can and should cover valuable possessions like electronics and jewelry along with covering your home itself.
Not putting thought into what your policy doesn't cover
You need to carefully evaluate any notable coverage exclusions of your policy before you agree to buy it. If a policy you're considering doesn't offer coverage for an important hazard or possession, you always have the option of finding another policy that does offer the coverage you seek to give you peace of mind.
Choosing a deductible amount that's too high
The deductible of your policy is the amount you have to pay out of pocket when a claim is filed before your coverage kicks in. The higher your deductible, the more an accident is going to cost you.
Failing to explore different policy options from other companies
There are many different insurance companies out there offering home insurance coverage. Make sure you take the time to explore your options before committing to a policy with a particular company.
For more information, contact local professionals like those found at Bishop Insurance Agency.