A Homeowners Insurance Checklist for First-Time Homebuyers

During this period of low interest rates, you might be looking to purchase your first home. There are many steps that go into buying a house, including getting homeowners insurance so that you can secure a mortgage. As a first-time homebuyer, you've probably never had to read through a home insurance policy to make sure it's suited to your lifestyle and your house. You can use our checklist to make sure you're getting coverage that will help protect your family and your investment.

Which Type of Deductible Will You Have?

You're probably familiar with the deductibles that come with health insurance and auto insurance. For these policies, the set amounts that you pay out of pocket are called flat deductibles. However, some home insurance policies have percentage deductibles. This option sets your deductible as a percentage of your home's overall value. Depending on which type you have, you may end up paying significantly more anytime you file a claim.

Review the Limits for Personal Property

In case of a natural disaster or burglary, homeowners insurance policies include protection for your personal property, including:

• Clothes
• Appliances
• Electronics
• Furniture
• Limited amounts of jewelry

Depending on your policy, you'll get reimbursed for these items based on their actual cash value (value at the time of loss) or replacement cash value (the price of buying a new replacement).

See What Isn't Covered

Even if your home insurance coverage seems comprehensive, make sure you’re aware of any exclusions, like flood insurance, that you might have to buy separately. As mentioned earlier, there’s typically only a limited amount of protection for jewelry. If you own lots of rings, watches, and other high-dollar items, you should consider adding additional coverage for them.

Are you in the process of buying a home? At Insurance Lounge, we can help you find homeowners insurance that meets your needs and the requirements for getting a mortgage. In just a few minutes, our Insurance Concierges® can give you a free quote for a policy. As an independent, no-commission agency, all we care about is helping you find the best coverage. To get started, fill out our quote and buy form today.