Home Insurance Needs for First-time Homebuyers

Becoming a homeowner is a significant milestone that requires careful planning. This transaction may become the most expensive you take part in throughout your life; due diligence should be a given. Still, even if you’ve taken every precaution and inspected every nook and cranny of your new home, you’ll have to account for the possibility of unexpected costs and losses down the road. Home insurance must be a top priority.

Am I Required to Have Insurance?

There are no sweeping laws regarding home insurance, but as a new homeowner, you’ll likely be subject to other obligations. Most mortgage lenders require you to carry certain levels of coverage throughout your loan to account for their own interests. Additionally, if your new home is part of a homeowners association, you may need to abide by their mandates.

How Can I Make Sure I Have the Right Policy?

As a new homeowner, you cannot afford to make assumptions or cut corners regarding home insurance. Also known as homeowners insurance, these policies are among the most frequently purchased in the United States. But just because they’re common doesn’t mean they’re not complicated. You should make sure you retain appropriate limits and endorsements according to your specific coverage needs. For example, retaining enough coverage to fully rebuild your home in the event of a total loss is advisable. Working with a qualified insurance professional, such as those at Thrifty Insurance Services, may be advisable.

When composing your home insurance policy, you’ll likely have various options regarding your coverage. Policies typically include coverage for tangible assets, such as the structural elements of your home, outlying structures on your property and personal possessions. Standard home insurance can also cover personal liabilities, such as if you cause someone else’s injuries or property damage, and additional living expenses, including hotel fees and restaurant meals, should you need to vacate your home temporarily.

When Do I Need to Have Insurance?

You should typically make sure your insurance is active on the same day you close on your home. In some cases, you may have to show proof of coverage before you can do so. Mortgage lenders may collect part of your annual premiums as part of your closing costs. Alternatively, you may be required to pay for a year’s worth of coverage at this time.

Get the Right Coverage

Contact Thrifty Insurance Services in Upland, CA, today to learn more about coverage options and get the right policy for your new home.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.