With all the new information you have to digest as a new home buyer, the last thing you want to hear is that you now have to deal with finding the right homeowners insurance. Take a deep breath and steady yourself. Yes, there is more that you will need to know, but, luckily, you have help along the way and you have a grand tool that can make the shopping quick, convenient and a money saver.
You Have the Upper Hand When Shopping for Homeowners Insurance
The first thing to realize as you shop for homeowners insurance is that you are in control. You may be feeling overwhelmed and possibly think you have a passive role in the process, but this is not the way to approach the situation. The options available to you are many, and more choices mean more power. Remember that these insurance companies are competing for your business. If you don’t like the way a specific company provides customer service, if you don’t like their terms and conditions, if you don’t like their rates; you can push them aside and look to the next insurance provider.
Talk to Your Lender About Homeowners Insurance
A good resource that you will have is your lender. They will provide you with the minimum amount of homeowners insurance they require you to have. Remember, it is technically their house until you pay it off, so they want to protect the investment. Also, the individual agents you will talk to will have a good sense of the top home insurers in the area. You will be surprised at the amount of information a well-connected mortgage agent can provide.
How Much Homeowners Insurance to Purchase
For first time home buyers, one of the most difficult questions is how much homeowners insurance to purchase. A few things that most first time buyers do not realize:
- Don’t insure the land on which the home sits
- Get an objective evaluation of the cost to rebuild the home
- Perform an accurate in-home inventory of your personal belongings
- Decide on a value for structures such as shops, unattached garages and storage sheds
Begin with these tips in mind and you will be able to make a much better decision as to how much coverage you need. This should also point out to you that a bit of action is needed on your part. You will need to go through your belongings and come up with a general but accurate value for the items in your home. You will also need to decide if you want coverage for those other structures that sit on your property.
Homeowners Insurance Discounts
Keep in mind that there are discounts for homeowners insurance and the more you take advantage of, the more savings you will see each year. Discounts are generally available for multiple policies (auto+home), online purchase/payment, alarm/security systems, AAA/AARP memberships and for certain professional affiliations. These discounts can add up to quite significant savings and these savings last month to month, year to year.
Access to Quotes for Homeowners Insurance
A major tool available for your use is rate quotes. They are a great way to evaluate companies and policies, and now they are available online for added convenience. If you have 15 minutes available you can get 5 or more quotes from reputable homeowners insurance companies. Fill out the rate quote form and wait for the quotes to appear before your eyes. From these quotes you can find the best deal on homeowners insurance that can save you hundreds of dollars each year.