If you are a first time home buyer, you will need to get home insurance. This is a simple process, but one you need to watch. If you’re not careful you could be paying for home insurance you will not be able to use.
The process for buying home insurance during the purchase is simple, at least I think so. You contact an insurance professional and provide them with personal information along with the appraisal or property inspection. I like the appraisal best because it provides value and details on the home. Remember, home insurance is designed to replace your home exactly in the manor it was at time of loss.
The agent then gets to work on quoting your home insurance. Captive agents will provide one home insurance quote. Independent agents, like me, will look at multiple home insurance quotes. It’s important for your home insurance policy to have the right coverage to replace your home. This is not the purchase price of your home but the replacement price of the home. Home insurance policies have many options so you want to make sure you go through these options to get the protection that meets your needs.
Once you find a home insurance policy, you will notify your lender and/or realtor and provide them with your agents contact information and a copy of the home insurance quote provided. I have seen lenders, escrow offices and realtors go with a completely different agent even though you requested specific agent. The biggest reason they do this is because they are trying to close the file and get you into your home. But your home insurance could be more expensive now or have less coverage or not be binding.
You, the insured of the home insurance policy must agree to the terms and coverage within the policy by signing the home insurance policy application. No signature can result in no coverage.
Protecting your new home with home insurance should be a simple process. Finding the right agent to make sure you have the right policy, protection and price is the first step. Then make sure you review all the documents in the process of purchasing your home. Don’t allow anyone to pressure you into anything.
It’s highly recommended you get a property inspection done regardless of getting an appraisal. Appraisals evaluate the value of the property. Inspections evaluate the issues with the property. You don’t want to move into a new home and have issues your home insurance will not cover. Your insurance agent should have one or two property inspectors if you need one. They are great at saving you on filing a claim on your home insurance.
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