Home Insurance For First-Time Buyers: What You Need To Know


So you are the first time homebuyer? The fundamental question that will linger in your mind after this most crucial decision in your life is if you need home insurance for the sole purpose of protecting your investment. As part of the deal, those who have gone for a mortgage will also be required to take up home insurance as well.

When buying a home in the real estate market, insurance will feature among the top priorities on your menu. However, you will find that you are spoilt for choice on the insurance company to settle on and category of home insurance. However, to find your way through, it is prudent for any first time homebuyer to be armed with the most important information on home insurance. What it will cost you and how to choose a reliable insurer.

Below are some helpful tips for first time homebuyers. Do not also forget to look out for tips on saving money on home insurance.

Is Home Insurance Necessary?

It is important to note that when buying a home using cash, you will not be required to have home insurance. Nevertheless, home insurance has many advantages. This is one of the most significant investments of your life, and it is imperative for you to have some protection for your investment. If you are purchasing the house through a loan, most likely, the lender will prefer that you take a home insurance cover for it. This is because the lender wants to protect its investment. Hence, insurance is the surest way to do it.

A home for sale insurance policy is an expense on your part that should be carefully calculated and incorporated into your budget. Before applying for one, find out beforehand if your lender will need you to take up one before you apply for a home loan.

What Sort Of Occasions Does Home Insurance Cope With?

Perils are referred to as risks that might cause damage to your house or the contents inside. Cover against such commonly includes regular events can happen in your locality. They include vandalism, fire, lightning, theft, among other risks. However, some hazards such as flooding will require additional cover.

How Much Insurance Do You Need?

This will be calculated according to your specific needs. Your cover will be calculated after taking stock of all the items that need to be covered by the policy. Make a list of everything that should be included and the estimates for replacing them. Based on the inventory, your insurance provider will then advice you accordingly on the best cover.

Do You Have An Idea On How To Save Money On Home Insurance?

There Are Several Things You Can Do To Save On Home Insurance

  • Improving your credit score-, you can get a better insurance deal if your credit history is in order.
  • Look out for discounts- some insurance companies will offer discounts on covers. This only applies if you have multiple covers with them.
  • Higher deductions- if you can afford to up your monthly, quarterly or annual deductions, depending on the agreement, the better. This will enable you to get a lower rate. All you might have to do is ensure that you have enough funds set aside for this kind of deductions.

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