4 Things You Need To Know Before Buying Home Insurance
If you're in the process of buying your first home, one of the important things you'll need to buy along with your new residence is home insurance coverage. Typically, your home insurance payment is lumped into your monthly escrow payment, but this can vary depending on the type of mortgage you're taking out. Either way, as you seek insurance coverage for your new home, there are some things you should know.
You Might Need Flood Coverage
Depending on where your new home is located, you may want (or even need) to purchase flood coverage as part of your protection. Many mortgage companies, for example, will require this if you'll be buying a home in a flood plain. Even if your home isn't located inside a known flood plain, purchasing this additional protection can give you peace of mind. After all, most standard home insurance policies don't include protection against flooding.
A Higher Deductible Could Cost You
A lot of first-time home buyers will opt for a higher deductible because doing so will save them on their monthly home insurance payments. The only problem with this is choosing too high of a deductible, to the point where you cannot comfortably pay it if you need to make a claim. When selecting a deductible, make sure you choose one that you'll be financially comfortable with. Otherwise, you could be in trouble when it comes time to file a claim.
You May Be Eligible for Discounts
Home insurance companies offer all kinds of different discounts, so don't overlook these if you're trying to save money. For example, did you know that a home with a metal roof could entitle you to a special discount? The same may apply if you have a security system on your home, or even if you carry your home and auto insurance coverage with the same company.
You Can (And Should) Shop Around
While your mortgage company may make some recommendations when it comes to home insurance carriers, you are under no obligation to use their recommendation. You can and should shop around for your home insurance to make sure you're getting the right coverage at a reasonable price. Even once you select a policy, it's a good idea to shop around for quotes at least once a year so you can always be sure you're getting the best deal. From there, you can enjoy added confidence with your coverage.
To learn more, contact a company like Accurate Insurance Services.