From Fur Babies to Fire Hydrants: Your Home Insurance Premiums

When I got my kids a dog, I had no idea that it could affect my homeowners insurance. I happened to run into my insurance agent in the store when I was buying dog food and he asked me what kind of dog we had. When I told him, he said I should stop in the office the next day. I had no idea that things like this could affect premiums, so I started asking what else could do it as well. I created this site to help others understand some of the finer points of homeowners insurance and what they should think about to manage their rates.

3 Things First-Time Homeowners Should Know About Home Insurance

Insurance Blog

If you are a first-time homebuyer and are preparing to close on the house you are buying, you will need to contact a homeowner's insurance agency to get insurance on the house. As a first-time homebuyer, you might not realize that this is a necessity when buying a home, and there might be some other things you did not know. Here are three of the most important things you should know as you prepare to buy homeowner's insurance when buying a house.

You cannot close on the house without it

The first and most important thing to know is that you cannot close on your home if you do not have proof of home insurance on the house. Your lender will not allow this, and the company handling the closing will turn you away without the title and keys to the house you want to buy. Buying a house with a loan always requires having home insurance, and this is why you will need to get a policy before your scheduled closing date. After getting the policy, print off the declaration page and bring it with you, as this will prove that you have ample insurance for the house.

Homeowner's insurance does not cover everything

The second thing you will need to know is that homeowner's insurance does not cover everything. Homeowner's insurance will always cover the structure of a house and will typically cover the contents of the house, but it may not cover all the things you own. There are usually exclusions when it comes to highly valuable items, but you can add coverage for items like these.

Additionally, your home policy will cover damage caused by storms and fires, but it may not cover damage caused by floods, earthquakes, or other types of natural disasters. It is important to know exactly what your policy covers when you purchase it, simply to avoid misunderstandings later on if you ever have to file a claim.

You can choose the coverage amounts, types, and company

The third thing that is important to know is that you are free to choose the company that you purchase the policy from and the types and amounts of coverage. You must make sure the policy offers enough structural protection to cover the amount you owe on your loan, but you can choose the other amounts and types of coverage.

If you want to close on the house you are buying, you will need to call an insurance agent to get a homeowner's insurance policy in place prior to your mortgage closing date.


17 May 2019