New Homeowners Insurance:
New Home Insurance may not be your focus when you purchase a new home. You will have contracts to sign, moving details to plan and many other things to think while buying a new house. Insurance an important subject. We usually think about insurance when we actually need insurance, which is usually to late at that point. A little knowledge about insurance can save you a lot of trouble when it comes to purchasing a policy or filing a claim.
First, it is important for you to realize that insurance companies run on statistics. When an insurance company provides a quote, factors like location of the house, rebuild cost of your home, security systems, your occupation, your age, your credit and how many policies you have with that company all come into play.
Before you request a quote from any insurance agent make sure you have as much information as you can about the home. Don’t make the mistake of insuring your home for what you bought it for. You need to make sure that you have insured it for its replacement cost. The replacement cost is the amount insurance coverage it will take to rebuild your home from the ground up in case of a total loss.
Insurance shopping is just like any other service that you need. It is always suggested to shop around as premiums vary from company to company. Shopping by the lowest price, though is tempting, may be a mistake. You need to also look for companies who have a good track record when it comes to paying claims. A small research may help you from making a poor decision solely based on price. An independent agent is a good choice to save time in that shopping project. Independent agents typically have 5 to 10 different companies to choose from. So they can shop around for you.
Moreover, home insurance is a requirement if you have a Mortgage on the home. However, their only concern would be that you have enough coverage to protect them for the loan amount. A basic policy may not cover replacement cost for your house. It is very important to read your insurance documents. This will let you know what is covered and what is excluded from one policy to another.
New Homeowners insurance protects you in many ways. Protection from falling objects like trees or if pipe burst. Liability coverage is protection in case of a law suit against you due to someone being injured on your property. It is always better to speak to your insurance agent and get all your questions answered with regard to types of coverage you may need and coverage amount. You need to however remember that not everything is covered the same way. You can also personalize your plan to cover certain things like expensive computers, furniture, clothes and jewelry. The standard coverage can be supplemented by adding riders.
New Home insurance is a complicated and confusing matter. You need to take some time to make sure that you understand the options available. Remember that you are insuring the 2nd most important asset to yourself and your family when you insure your home.