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Buying Homeowners Insurance for The First Time

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Homeowners insurance protects your biggest investment by paying for losses or damage to your property if an unfortunate event occurs. Getting the best deal when buying homeowners insurance takes a lot of research and understanding of the process. Let's explore what you need to know to buy home insurance at an affordable rate that offers adequate protection for your home and belongings.

Buying homeowners insurance is a lot like buying car insurance. There are many carriers out there, and they all have different packages in terms of coverage and price. If you’re purchasing your home through a lender, they will probably require you to buy homeowners insurance. They usually have a package offer where they will add the payment onto your mortgage payment and keep it in an escrow account. If you’re offered such an arrangement, it’s always a good idea to check around and make sure that it is the best deal.


Tips for Buying Homeowners Insurance for the First Time

Buying homeowners insurance for the first time can be confusing. Make sure to compare quotes and offers. Here are a few things to consider before making your decision.


1. Don’t Just Look at Price

One trap that many first-time homebuyers fall into is taking the coverage with the lowest price. The lower price quote might not always cover the things you need it to should you have to make a claim. Also, make sure to compare what is offered and the coverage amounts.


2. Make Sure Coverages Are Enough

Make sure to read the limits when comparing policies. If you have valuables or expensive electronics, you need to make sure that your limits are high enough to enable you to replace your belongings if anything were to happen. Your insurance company can add on additional amounts at an affordable price. Make sure your most expensive items are covered, as the biggest danger as a homeowner is underinsuring your home.


3. Do You Need Additional Riders?

If you have pets or run a business from your home, these items may or may not be included in your homeowners policy. Make sure to ask about them, and if necessary, purchase the additional amounts required to cover them. Also, check that you have coverage in case someone gets injured on your property, either through negligence on your part or their own.


Is Homeowners Insurance Mandatory?

You are not required by law to carry homeowners’ insurance. However, most banks and lenders require you to have homeowners insurance, at least for the duration of the mortgage, to protect the lender’s assets. The amount you’re required to carry differs by state, county, and local ordinances.

As a first-time homebuyer, you be wondering “is homeowners insurance reliable?” The answer to this question is yes, homeowners insurance is reliable if you buy from a reputable company and read the policy and coverages carefully. The best way to find out how much coverage you need is to contact one of the helpful agents at Wawanesa Insurance for a quote.


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The above content is for informational purposes only and is not a direct representation of coverages offered by Wawanesa or its policies. The information does not refer to any specific contract of insurance and does not modify any definitions, provisions, exclusions or limitations expressly stated in any contracts of insurance. All references within the above content are illustrative and may not apply to your situation. The terms and conditions of the actual insurance policy or policies involved in a claim are determinative as to whether an accident or other loss is covered. To understand the coverage under your current policy, please log into the account management platform to review your policy or contact an agent directly.