When Do I Need To Insure My New Home?

Whether you're buying a home or building a home, getting insurance is vitally important. Everything from fire and flood to theft and vandalism can hurt you financially without an effective insurance policy. Understanding the nuances between coverage will help you find the best policy to protect your asset.

Considering Your Insurance Options

When buying a home, homeowner’s insurance offers coverage for things like theft, fire and personal liabilities. If your home is burglarized, this can cover a variety of items such as furniture, electronics, office equipment and even valuable items like jewelry and fine china. For a home that’s situated in a flood-prone area, getting flood insurance is a good idea and can offer up to $250,000 in coverage and $100,000 for contents.

Another option is title insurance, which will protect you if the property title is invalid. This type of policy offers coverage up to your home’s mortgage value. If your down payment is less than 20 percent of the home’s value, you will probably have to take out a private mortgage insurance policy. This is designed to protect the lender in case you default on your mortgage.

When building a home, a standard homeowner’s policy offers protection if it incurs damage during construction. Sometimes, there is also limited coverage for theft as long as the building is secure and lockable. In terms of liability coverage, this protects you in the event that someone is injured on your property and chooses to sue. There is also a dwelling and fire policy, which covers damage to your home and personal liabilities, but doesn’t cover theft.

When to Sign a Homeowner’s Insurance Policy

There’s a lot of competition among insurance companies, so it’s important to understand your home insurance options and compare quotes. At Obrella, we take the guesswork out of this process and make it easy for consumers like you to find the ideal coverage. It’s smart to get at least three quotes before making a final decision. You should also make sure a policy offers adequate coverage for your specific circumstance and is economically feasible before signing.

Everything from fire and flood to theft and vandalism can hurt you financially without an effective insurance policy.

Budgeting for the Right Policy

You don’t want to spend beyond your means or have any surprises with the final cost of your policy. That’s why it’s smart to ask your insurance company if there are any potential discounts. For instance, having a security system could reduce your rate. Bundling your home insurance with other types of insurance through the same company could also lower your premium. If you go beyond standard homeowner’s insurance coverage, you should crunch the numbers to see what the overall cost is before proceeding.

Insuring your house is one of the most important forms of protection. Whether you are buying or building a new home, it’s important you have an adequate amount of insurance coverage. Give expert agents a call. Let them help you find the insurance policy that will help protect you and your home.

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