First-time homebuyers currently make up approximately 34 percent of all new home buyers.
Are you part of this group? If so, you probably aren’t familiar with things like home buyers insurance and what it can do for you.
Discussed below are the top 5 benefits of home buyers insurance. You’ll also find some tips on how to choose between different types of insurance and find the right home buyers’ insurance provider for you.
What Is Home Buyers Insurance?
Home buyers insurance is a type of insurance geared toward new homeowners. It helps to cover the cost of repairs if your home becomes damaged (from storms, fires, floods, etc.). It also covers replacement costs for personal possessions (jewelry, electronics, etc.) that become damaged or stolen.
Benefits of Home Buyers Insurance
Often, new home buyers get so caught up in all the other aspects of purchasing a property that they forget about insurance until the last minute. Don’t let this happen to you.
There are lots of reasons to consider investing in home buyers insurance early. The following are some of the greatest benefits this type of coverage can provide:
1. Save Money
Some people hesitate to pay for insurance because they think the premiums are too high. Take a step back, though, and think about how much it would cost if your new house caught fire and you had to pay for all the repairs out of pocket. It’d probably be quite a bit more expensive, wouldn’t it?
Home buyers insurance covers the cost of repairs and replacements in your main dwelling, detached structures (like your garage), and more. This can save you a lot of money in the long run.
2. Protect Yourself from Lawsuits
You might be surprised to learn that home insurance also protects you from lawsuits. If an accident happens on your property, like a fall or a dog bite, having home insurance will help you from being held personally responsible for medical bills and other related expenses.
3. Cover Extra Living Expenses
Some household accidents, like floods and fires, can temporarily displace you and your loved ones.
It can be expensive to pay for hotels and Airbnbs for several weeks while your home gets fixed up, and a lot of people don’t have the funds readily available to cover these surprise expenses. Fortunately, home insurance can help to cover your extra living expenses and ensure you and your family have a place to stay until repairs are done.
4. Fulfill Mortgage Requirements
Many mortgage lenders require you to purchase home buyers insurance before they’ll approve your loan. When you take out a mortgage loan, your home serves as collateral. If your home gets burned to the ground in a fire or suffers severe damage from a flood, it loses its value, which isn’t ideal for the bank.
5. Enjoy Peace of Mind
Finally, you can’t deny the peace of mind that home buyers insurance provides. When you invest in an insurance policy, even a limited one, you can feel confident that you won’t be entirely responsible for repairs and replacement if something goes wrong.
Of course, no one wants to think about their new home falling victim to a serious disaster. However, if the worst happens, you need to know that you’re not completely on your own.
How to Choose a Home Insurance Policy
Okay, you can see why it’s good to invest in home buyers insurance right away. How do you decide which policy to purchase, though? Here are some tips that can help you find the best policy for your needs:
Consider Coverage Needs
Start by thinking about the types of coverage you need for your new property.
Make sure you have enough coverage for your home’s main structure, as well as any outbuildings like a garage. Factor in other structures like the pool and fencing if needed, too, as well as your furniture, clothing, and other possessions.
Always compare rates from a few different insurance providers before making a final decision. There are lots of comparison websites that make it easy for you to look at policies side by side and choose the one that is the most affordable and provides the greatest amount of coverage.
Remember, it’s not always best to choose the cheapest policy. Don’t sacrifice important coverage because you’re trying to save a few extra dollars per month.
Check the Financial Strength Rating
Always consider the insurance provider’s financial strength rating, too. Financial strength ratings help you figure out how financially healthy an insurance company is.
This matters because you need to know that the company will still be around when something goes wrong with your home, even if that happens several years down the road. If the company is not financially strong, they may go out of business and won’t be able to help you after a fire or another issue takes place.
In addition to looking into the financial strength rating, check out reviews from current and past customers, too.
Reading reviews helps you to learn about other people’s experiences working with a particular company. It also allows you to make an informed decision and find an insurance provider that seems like a good fit for your needs.
Ask About Customer Assistance
Don’t forget to ask about each company’s customer assistance options, too.
As the experts at Lopriore.com have pointed out, good customer assistance is a must. You need to know that you can get in touch with a representative at any time, whether it’s day or night, a weekend or a holiday.
Find out what options they have for getting in touch as well. For example, do you have to make a phone call, or can you file a claim through the company’s app?
Find the Best Insurance Policy Today
Now that you know more about home buyers insurance and how it differs from other types of insurance, are you convinced that you ought to invest in it?
Check out some of the other insurance-related articles on our site today for more help choosing a policy and making sure you’re covered long-term.