Home Insurance for First-time Buyers: What You Need to Know
Being a first-time home buyer can be overwhelming, and there are many steps to complete before moving into your new home. One critical step in the process is purchasing homeowners insurance. The following tips and information are essential for first-time homeowners to know.
What Does Homeowners Insurance Cover?
Homeowners insurance policies typically include the following coverages:
- Dwelling coverage may help protect the physical structure of your home, including the walls, roof, floors and foundation, against covered perils such as fire, windstorms or vandalism.
- Personal property coverage may help cover your belongings within the home, such as furniture, appliances, electronics and clothing. If these items are damaged or stolen due to covered perils, home insurance may help reimburse you for the loss.
- Liability coverage may help cover medical expenses and legal fees if someone is injured on your property and you are found legally responsible. It may also extend to incidents outside your property but involving your actions or those of your family members.
- Additional living expense coverage may help cover temporary living expenses, such as hotel stays and meals, if you can’t live in your home due to a covered loss.
Policies vary, but homeowners insurance typically covers losses from the following perils:
- Falling objects
- Damage from vehicles
Is Homeowners Insurance Required?
Home insurance is not legally mandated; however, your mortgage lender or homeowners association may require it. Even if home insurance is not required in your situation, it is still highly recommended. Certain types of coverage may also be required in some areas prone to natural disasters, such as flood-prone zones or earthquake-prone regions.
Do I Need to Buy Homeowners Insurance Before Closing?
A mortgage lender will most likely require proof of homeowners insurance before you can close on your home. When you sign a contract to buy a house, you should start shopping for a homeowners insurance policy immediately.
How Much Home Insurance Do I Need?
You should consider having enough insurance to help cover the cost of rebuilding or repairing your home if an unexpected incident occurs. You may also need coverage to replace or repair your belongings, protect yourself against liability claims and cover living expenses if you cannot live in your home while repairs are made after a covered event. Your mortgage lender may also require you to have a specific amount of coverage.
How Much Does Home Insurance Cost?
Homeowners insurance costs vary greatly depending on several factors, including the following:
- Geographical location
- Replacement value
- Home characteristics
- Claims history
- Coverage limits
Where Do You Buy Homeowners Insurance?
Contact James V. Funaro Agency today to discuss your home insurance needs. We can help you get the coverage you need to close on your first home with confidence.
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.