Whether you’re a third homeowner or a first there is a long list of things to take care of to ensure that your new house will be a home. On that list should be INSURANCE! It is an easy thing to forget about when you’re dealing with the real estate agent, the bank, your family, and of course packing! To help you get ready to buy insurance for your house we put together 5 pieces of advice to consider before you talk to your agent.
There are different types of homeowner’s insurance policies available depending on what your situation looks like. In short, the coverages vary based on what kind of perils (causes of a loss) to insure against. To put this in non-insurance terminology, a basic coverage policy will only insurance against the “common” causes that are named/listed, broad coverage will extend the basic coverages and include more causes, and special coverage will be an open peril, meaning that it will cover anything except what is specifically excluded. Homeowner’s insurance is available for those who own a house, rent an apartment, and there is a policy for condominium owners too!
Back to the house fire that destroyed the whole house… think how much money it would cost to replace EVERYTHING that you had. Unless you add an endorsement to your policy the replacement will be on an actual cash value, meaning that the current replacement cost minus the depreciation equals the actual cash value that the company will pay for the items. Think about dishes, couches, TV’s, video games, clothes, tables, artwork, etc. When you purchase a homeowner’s policy you automatically receive 50% of the coverage limit you have for your house to replace the items you own. The limit may be decreased or increase depending on which policy type you have (different limits for homeowner vs. renters). It is important to be sure that you have the proper amount of coverage to replace your items, because if you have too little coverage then you might be stuck with the bill for replacing the rest. Something to note about personal property coverage is that whatever is owned or used by you is covered ANYWHERE in the world. There are special limits for property at a second residence, like a vacation house, and for certain items such as guns, artwork, jewelry which your policy will describe further. There are apps for your devices that will help you log everything in your house. Read more about those apps here. If you have an inventory of your belongings it makes the claim process easier and faster if you have a loss occur. Plus, when going through all your stuff you might find it a good time to get rid of junk you forgot you had! Or maybe find something precious that you haven’t thought about in a while!
There are many add-on’s to the coverages that come with homeowner’s policies. For example, a very common add-on is the personal property replacement cost. With this add-on you change the coverage from actual cash value to a replacement cost basis. Certain types of items will not be covered by this endorsement unless they are scheduled, such as fine arts. Other add ons include; earthquake coverage, scheduled personal property, home day care coverage, or water backup . Of course it is best to discuss what extras you can add on with your agent, remember each company is different and their options may vary.
We all love to hear DISCOUNT especially when it comes to insurance! The safer your home is the more discounts you are likely to receive. Some examples include;
These tips are only intended to help you get started thinking about Homeowner’s Insurance. We suggest talking over decisions with your agent and asking questions you may have. I wonder if "common" causes included in homeowners insurance is different where certain disasters are more common. I live in a high earthquake area, but flooding would almost never happen. I know there are plenty of places around the country that have very specific disasters that can happen. Or am I completely wrong and are common causes smaller things? 5/12/2016 10:34:54 pm
Thanks for the great tips, a lot of first time home owners insurance buyers might not realize that there are different types, so it's great that you brought that up. It really is important for home owners to look at the damages their house might face outside of the common causes before they start looking to buy. For example, if they live in a floodplain they might consider getting flood insurance if it's not included under the regular home owners insurance bundle. 6/1/2016 09:51:10 pm
I want to buy a house sometime in the near future, but I don't know very much about homeowner insurance. It is good to know that I should look to pay the right amount for my house. I wonder if talking to someone if they can help me know how much I need to get it for.
Vanessa P
6/2/2016 04:05:40 pm
Luke, 6/3/2016 09:26:31 pm
It's good to know that the safer the home is, the more likely it is that you'll receive discounts on your insurance. I'm guessing my home is pretty safe but I'm not too sure. It sounds like it'll just take time and research to make sure that my house is in a condition that'll get me a good discount. 9/16/2016 01:00:12 pm
I think the second tip you gave is really a big key to making sure all of your possessions are safe. You have to determine how much stuff you have, and how much of it you want covered. I think another good tip would be to keep valuable things, like contracts and passports, in a fireproof safe because those are things that insurance can't replace. Thanks for the great tips! 10/7/2016 08:55:08 pm
That's interesting to know that if you have safety precautions you get discounts. I should probably get an alarm system before I get insurance then. I want a good policy but it can't be too expensive. 10/26/2016 06:08:34 pm
I had no idea that there were so many different types of homeowners insurance. I've always been under the impression that it's all the same. My husband and I are finally ready to buy a house. Along with that, we are going to been to get insurance. We'll be sure to do plenty of research, to make sure we get exactly what we need. 11/18/2016 05:58:02 pm
I like what this article recommends about considering the amount of personal property in the home. It makes sense that this could be a big part in making sure you get enough coverage. It's something to keep in mind just to make sure I can get enough insurance to easily cover the big things in the house. 11/29/2016 12:18:11 pm
I am looking into getting new homeowners insurance in the future and I have a lot of questions about what it is that I need. I never realized that I would need to determine the cost of everything inside my house, in addition to the house itself. That is going to make it much more difficult to find the right policy, but it is very helpful in my search. 12/29/2016 02:36:38 pm
I had no idea that there are apps for your devices that will help you log everything in your house. I remember trying to keep up with all the paperwork of listing on our house. I lost about half of them and it took 1 year to sell our house. I will be sure to ask an agent about these apps so that we can have an easier time tracking everything! I like that you suggest to get the right type of insurance. I can see why talking with your agent would be a smart thing to do because they have the knowledge of what is best for specific situations. I am thinking about buying a house next year. I'll have to keep this in mind when I settle on one. 7/31/2017 04:31:26 pm
I like that you mentioned how you can get discounts for safety features like alarm systems. We recently had one installed in our home and can't wait to start saving. We will have to contact our insurer and let them know right away. 8/25/2017 05:00:22 pm
Thanks for the tips on buying home insurance. It's good to know that we need enough coverage to replace all of the items in our home. I'd hate to have a fire, and then have to pay to replace our furniture, or something. 10/11/2017 06:59:21 pm
Thanks for explaining that basic homeowner's insurance will cover only the common causes that are listed. My husband was offered a job in a city that's on a floodplain, and I'm worried that our insurance won't cover flooding. Maybe I should check to see if our basic package covers flooding before we start looking at other plans. 10/16/2017 06:32:43 pm
My best friend is looking into getting homeowners insurance since her and her husband are looking at homes. She was asking me for advice the other day and I wanted to look up some pieces of guidance. When she goes to talk to an agent I will let her know that she ask for discounts and other ways to save. My wife and I have been wanting to get some good home insurance, and I'd love some tips. I'm glad you mentioned talking about discounts and other ways we could save money. I think that being able to talk to our home insurance about discounts would be good, and help us save some money! Thanks! 11/17/2017 11:38:51 pm
It's good to be made aware that it's important to read about the insurance you are getting to make sure that it's the type of insurance that you are looking for since there are many to be had. I'll be sure to do so since it's going to be my first time living outside my parent's reach and getting an insurance for my own home is quite new to me. Thanks for the guide on what to know to purchase the right homeowner's insurance! 12/1/2017 06:55:25 pm
It's nice to learn that's quite a lot of different home insurance to consider when picking out the perfect one for you since they are quite specific on what perils they cover as you've mentioned. That's perfect to learn due to my wife and I are thinking of getting one for our newest home, but we'd like it to cover everything to be safe. Hopefully, they would have a good offer that would suit our needs best. Thanks! 12/6/2017 12:38:44 pm
I didn't know that when you purchase a homeowner’s policy you automatically receive 50% of the coverage limit you have for your house to replace the items you own. My wife and I are looking around for our first home, and want to make sure we select the right homeowner's insurance as well. Thanks for the information-I know a whole lot more now than I did before! 12/19/2017 06:19:22 pm
I like how you've mentioned that it would be essential for you to find the perfect balance for your insurance policy to make sure that you are neither underinsured nor over insured. That is quite timely as I was just thinking about getting a home insurance for our new property together with getting a car insurance for our family vehicle so that I can get them in a package or deal. Hopefully, the policies they would offer us would be just enough for our family's needs. Thanks for the informative article about some things to know when purchasing homeowners insurance! 1/3/2018 07:52:13 pm
I liked that you had mentioned that when it comes to getting homeowners insurance that it can be important to make sure you're getting the right amount to avoid being underinsured. My wife and I are new home buyers and we haven't been sure about what to do when it comes to getting everything insured. We'll have to figure out how much insurance we'll be needing for our home to make sure we can get the right amount. 1/4/2018 07:49:05 pm
Thanks for explaining that a basic coverage policy will only insurance against common causes. I would like to get homeowners insurance for my home. In getting the right type of coverage, I'll be sure to review the different policies that are available. 1/11/2018 07:46:07 am
Its amazing that such a simple things and the advice you are giving can make such an impact. Thanks for the great tips and for all the effort you put into this article its very helpful. I do unfortunately live on a flood plane so I better check that this is covered in my policy. I would hate to get flooded and not be covered. 1/11/2018 04:00:49 pm
I appreciate that you talked about how you really don't want to be paying more premium excess coverage that you really don't need. My youngest sister just moved out and is looking to get home insurance with her husband. I'll be sure to talk to her about finding a service that will give them the proper coverage for the right price. 1/12/2018 06:13:24 pm
Thanks for your comment about how you should get homeowner's insurance so that you won't have to replace everything out of your own pocket if something bad were to happen. I like how you said that you could choose a plan that will work well for you and your family. My husband and I are considering getting home insurance since we just moved and have some valuable items. Thanks for your tips. 1/31/2018 12:08:46 pm
I never knew that property insurance can also cover my clothing items. We recently moved into a brand new home and I brought my collection of designer clothes. Thank you for the information on homeowner insurance policies and what they cover. 2/14/2018 06:53:37 pm
I agree that you want to consider what kind of insurance is right for you. Considering the difference between different coverages helps ensure that you will be covered under the right circumstances. I'm looking for an insurance company to help me get home coverage, so I'll have to consider what is right for me. 2/28/2018 08:36:24 am
My wife and I haven't bought a home before, but we're looking for one soon. I liked how you pointed out that it's important to get the right amount of insurance. We don't want to be over-insured or under-insured, so would you suggest we consult with an agent on what is best for us? Thanks for the tip on determining the amount of personal property you have! I didn't realize that this was such an important factor in home insurance, but it's good to know that this amount will determine if you're able to replace everything you owned after something like a fire. My husband and I are planning on buying our first house this year and want to budget out for everything, including home insurance, so I'm glad I came across your article! 4/11/2018 08:49:31 am
I appreciate you mentioning that not everything is covered in every single kind of insurance policy. It all depends on what you decide to go with and, depending on where you live, its important to have certain policies over others. I will definitely be thinking about this some more so that I can give better advice to my sister while she's looking to buy a home. 5/5/2018 02:53:50 am
This is a great guide for beginner, the bog has in-depth details that a person wants to know before choosing a home insurance policy. I wish to write a similar post. Thank, your blog helped me in getting a better idea. 6/26/2018 09:08:51 am
I need to shop around and find an insurance policy. I agree that you need to make sure you get the right amount. It's a good idea to get fire insurance, like you said. There's definitely a balance between getting enough coverage and getting excess coverage. 7/23/2018 12:46:52 pm
I appreciate what you said about how important it is to get the proper amount of coverage on your items. We've been hearing a lot about fires and we don't want our house to fall victim to one. If it ends up happening, I can see how proper coverage would help us to replace what we need a lot easier. 7/24/2018 01:04:09 pm
I recently bought a home and I want to find good home insurance, but I have never bought home insurance before, so I am glad that I found this article. It is interesting that you say to get the right amount of insurance because I definitely don't want to be under insured and I want to make sure that I am protected in case of an accident like a fire. Also, I will make sure to find out if potential insurance companies provide discounts and other ways to save because I want to save as much money as possible while still getting enough coverage. 7/30/2018 03:35:09 am
Thanks for sharing with us this informational stuff. 8/3/2018 03:00:54 am
It's good to visit an agent and discuss how much insurance you need and the procedures and everything and do some research yourself and then decide which insurance suits you better and which one do you want. 8/9/2018 09:10:25 am
I'm looking at buying my first home in the near future. I appreciate how you point out the need to get enough for my home without overspending. Would a good insurance agent be able to help me determine exactly how much coverage to get? 8/9/2018 08:29:54 pm
Thank you for pointing out the importance of having an insurance coverage that will cover all the items in case something happens because having little coverage will not really work. The house is packed with a lot of different heirlooms that were handed down from the previous generations. Of course, I want all of them covered and protected in case calamity strikes. For this, I'm sure I need a large coverage. 8/21/2018 05:16:47 pm
Thanks for the tip about considering broad coverage home insurance. It would be smart to consider what sort of special things a broader coverage plan will cover you against in the event of an emergency. My husband and I need insurance for our first home, so we'll have to consider what type of insurance it is. I didn't realize that you could get different amounts of insurance! My husband and I are planning to buy our first home this year, so I'm doing a little research to make sure we've got a good budget in place. It's good to know that we should make sure we have the right amount of coverage for the home we pick in order to be prepared in case anything happens to it. 8/27/2018 03:40:21 pm
You've got great tips for getting home insurance. I like how you said that it's important to have enough coverage to replace items and things. We've got some nice things in our possession, so I definitely want to cover their price. 9/4/2018 02:42:17 pm
Thanks for the tips on what you should know when purchasing some homeowners insurance. I agree that you really want to make sure that you get the right amount of insurance for your property because you could end up with too little. My sister is looking into buying a new home and has been looking into the cost of insurance; I will be sure to share this with her. 9/4/2018 11:37:03 pm
Thanks for sharing! It's always helpful to do a little research of your own before getting an insurance policy. 10/11/2018 12:21:27 am
Thank you for pointing out that I need to make sure that the coverage properly covers the house in case something happens, otherwise, I will have to pay for the rest. If that is the case, then I probably need to review the policy and what it covers before I agree. Or better yet, maybe I should tell the insurance agent what I need and rely on them to tailor one according to it. What do you think? 10/30/2018 09:47:52 am
Would you recommend getting an insurance broker to know the in's and out's of specific policies? I have been considering buying a home and already have a broker for my health insurance. 11/18/2018 05:43:05 am
Your post information is very unique and useful for all readers. 11/20/2018 06:25:26 pm
Thank you for pointing out that you don't want to be under insured so you need to make sure you get the right coverage. My husband and I just bought a home and need to get home owners insurance. I'll have to look into finding the best insurance in our area. 12/11/2018 01:39:42 pm
It's good to know that there are different types of plans with different coverage to choose from. I think it would be nice to get a plan that has some extended coverage, like you said. That would definitely give me more peace of mind and know that I would be financially protected in case of an emergency. My wife and I are about to move into our first home and start looking at home insurance quotes. Thank you for talking about the different discounts that we could get with homeowner's insurance. I would have never guessed that having a fire extinguisher and deadbolt locks would reduce the price. 3/2/2019 12:57:27 am
One of the more important things to know when getting homeowner's insurance is that there are different types and kinds of insurance policies that are available depending on whatever circumstance you would need to apply. In simpler terms, a basic coverage would only cover those that are explicitly listed, while a broader coverage includes all those that are listed plus those in the original basic listing, and special coverage covers almost everything else that is listed (with some exceptions). If I were to get homeowner's insurance, I would make sure to consider all the options available so that I know which exact insurance policy to get for my family. 7/24/2019 04:29:16 am
My wife and I are about to move into our first home and start looking at home insurance quotes. Thank you for talking about the different discounts that we could get with homeowner's insurance. I would have never guessed that having a fire extinguisher and deadbolt locks would reduce the price. 9/20/2019 01:38:29 pm
It was helpful when you explained why getting the right type of home insurance is important. My brother and his wife will be buying their first home soon. I think your advice would help them make the right decisions when they're shopping for homeowners insurance! 10/24/2019 03:33:55 pm
That's really interesting that you need the right amount of coverage because with too little you wouldn't get all of your money back. Personally, my apartment was too small so I'm looking at moving closer to family and into a home. I'll have to get a home insurance quote. 10/28/2019 11:55:41 am
I thought that it was very helpful when you suggested to get the right amount of insurance. My wife and I have been talking about finding a service to help us protect our home in case of an emergency. When we look for one, I will be sure to get the right amount of insurance. My husband really liked that you said that you need to be sure that you have the proper amount of coverage to replace your belongings. We have made the decision to buy a home and we would really love to make the right decisions so we can have a smooth experience buying our first home. We will need to find an insurance policy that could work out with our lifestyle and our belongings. 2/5/2021 01:10:44 am
I had no idea that having homeowners insurance can cover your personal belongings if ever something happens to your home. I have a friend who's looking around for a home that he could live in his family. I'll be sure to share this with him so he could look into insurance before finalizing his purchase! 11/9/2021 03:52:09 pm
It was helpful when you said to get the right amount. My sister needs homeowners insurance. I'll make sure to pass these tips along to her as she searches for a policy to get. 12/22/2021 03:22:39 pm
Thank you for pointing out that it is important to get the right amount of insurance when you are purchasing a home. I would imagine that the area you live in can determine what kind of hazards could affect your home. Consulting with a local insurance agent could be a good way to educate yourself on potential hazards. 2/9/2022 06:16:04 pm
I appreciate what you said about burglary alarm systems to get discounts. I pay too high of a premium on my insurance. I'll have to consider getting an agent to help me switch up my policy. 3/23/2022 03:17:01 pm
It makes sense to choose a home insurance plan that provides enough coverage for your amount of personal property. My older brother and his wife are moving into a new house in the next month and they want to get proper insurance. I'll make sure that they find an agency that offers the right coverage amount for their needs. 3/29/2022 12:11:58 pm
It's awesome that you mentioned that depending on your situation, there are various types of homeowner's insurance coverage available. My wife and I had just finished putting our new house together. We'll make certain to find the most suitable house insurance provider for our home. Thank you very much for your suggestions. It'll lead us in the right direction. 4/22/2022 01:57:35 am
This is such an amazing blog. I really love reading it. 6/10/2022 07:24:38 am
Thank you for sharing the tips and idea. Also thanks for talking about the different discounts that we could get with homeowner's insurance. Comments are closed.
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