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Tips For Buying Home Owners Insurance For The First Time

2010-08-15

Insurance is an important part of any new purchase, including the purchase of a new home. For new homeowners, it is important to take a moment and consider how best to protect their new investment. Home owners insurance is a must for any owner, but first time homeowners insurance even more so. For those who have never purchased home insurance, there are a few tips to keep in mind that will help the process along, as insurance can be a confusing task.

First, know the value of your property, as well as its square footage. Generally, this will be covered on your city tax assessment and should also be in the documentation you received if you purchased a new home from a builder. The square footage of a home is considered to include the main and second (if applicable) floors, but only the space in the basement if it is a finished living area. The garage-attached or not-also does not count toward overall square footage. This information is needed by the insurance company in order to create a home owners insurance policy that is tailored to the size of your home.

Those purchasing their first time homeowners insurance should also be aware of the potential discounts that could exist on a policy. These are because of things that lower the risk of fire, theft or damage to the property. For example, a home that is within a certain distance of emergency services such as police and fire stations, or even close to a fire hydrant on a street may qualify for a discount, as saving that home from damage in a fire or preventing a crime will be made easier by virtue of its proximity to these services. Other, internal options can help as well, such as security systems and carbon monoxide detectors. Anything that makes the job of the insurance company easier and limits the potential for claim will generally result in a discount on home owners insurance.

It is vital for every new home owner to have home insurance and to keep it in good standing. A sudden weather event or nearby fire could easily cause significant damage to a home, and purchasing insurance after the fact could be a very expensive proposition. Be prepared with information about your home and be savvy about discounts to find the right quote for your first time homeowners insurance.