First Time Buyers Guide for Home Insurance

Homes are a big investment. But the costs do not simply end after you’ve claimed ownership over the property. Your house will encounter a number of threats including natural disasters and acts of man. From floods to hurricanes, theft to arson, the security of your home is running on a very thin thread. Arm yourself and your home with the proper protection. A home insurance policy is a great way to avoid sizable costs from home repairs and replacements.

If you’ve decided to secure a home insurance policy, give yourself the credit for making a savvy homeowner decision. Though it took quite some time to think the decision through, what comes next is even a greater and more difficult challenge. Finding the best home insurance policy is your next step. And with hundreds of insurance companies lined up at your doorstep and hundreds of insurance products available, the task is not something accomplished successfully by a beginner-level prospect. Yet using the guidelines below, you’ll be able to find and acquire a good home insurance policy even as a novice.

Knowing the type of insurance you need should be your chief concern. Home insurance policies largely vary in coverage, depending on the client’s needs and situation. To make the types simpler and easier to understand, risks and situations have been grouped into certain home insurance plans. These include HO-1, HO-2, HO-3, HO-4, and HO-5. The most basic type of all home insurance policies is the HO-1, which covers hail, fire, riots, aircraft crash, smoke, vandalism, or volcanic eruption. Those with needs beyond what HO-1 covers can opt for a more comprehensive home insurance plan.

Know how much you can shell out on a monthly basis. Depending on what insurance plan you took out, what risks you’ve been identified with, and any coverage features you decided to add, the cost of your home insurance will immensely differ. If you find your monthly premiums to be too much and impossible to keep consistent due to your monthly income, there are many ways to lower your premiums. Below are some of them:

• Raise deductibles. This refers to the amount of cash you have to pay as a result of a loss prior your insurer begins paying a claim. The larger the amount of deductible you pay, the more cash you save on premiums.

• Multi-insurance coverage. If you are also looking to get your car insured, consider bundling up the two under one roof. This provides a discount of up to 15% from your total premiums.

• Look for discounts. Firms provide a variety of discounts including retirement discounts and membership discounts if you are a member of a certain professional group.

• Keep a flawless track record. Your credit history will be screened thoroughly. If the insurer finds out you have plenty of past and existing debt, you’ll likely be given a much higher premium. Pay your monthly bills on time and avoid securing loans and credit cards if you do not have the finances to pay for them.